Amplify Weight Loss Drug & Treatment ETF (THNR) 4th Quarter Commentary 2024
Amplify Weight Loss Drug & Treatment ETF (THNR) seeks investment results that generally correspond to the performance of the VettaFi Weight Loss Drug & Treatment Index. THNR ETF provides access to global companies involved in the pharmaceutical manufacturing of GLP-1 agonist or enablers of such businesses.
THNR returned -14.67% on a net asset value (NAV) compared to its underlying benchmark, the VettaFi Weight Loss Drug & Treatment Index at -14.64% for the fourth quarter (Q4) 2024. THNR ended the year since its May inception down 9.1%. View Standardized Performance
Lilly's Drugs No Longer in Shortage
The FDA has reaffirmed that the shortage of Eli Lilly’s blockbuster obesity and diabetes medications is resolved, dealing a blow to pharmacies and telehealth services that have capitalized on providing compounded versions of the drugs. The FDA said compounding pharmacies known as 503As have until February 18 to stop compounding tirzepatide or risk enforcement action. Larger compounding facilities known as 503Bs have until March 19.
Race for Oral GLP-1
Merck has made a big move in the GLP-1 space, announcing it is paying $112 million upfront to Hansoh Pharma for rights outside of China for a pre-clinical oral drug called HS-10535 which is a GLP-1 receptor agonist candidate similar to injectable forms from Novo Nordisk and Eli Lilly. This move is disappointing to investors in Viking Therapeutics, Terns Pharmaceuticals and Structure Therapeutics, which had been seen as potential Merck acquisition targets. Companies such as Amgen, Pfizer, Structure Therapeutics and Viking are also testing oral drugs for obesity in the hopes they will provide patients a more convenient option. AstraZeneca also has licensed an experimental weight-loss pill from China’s Eccogene.
Proposed Rule Could Expand Medicare and Medicaid Coverage for Anti-Obesity Medications
On Tuesday, November 26, the Centers for Medicare and Medicaid Services (CMS) proposed a new statutory interpretation that, if finalized, would result in expanded Medicare and Medicaid coverage for anti-obesity medications (AOMs). Currently, Medicare is forbidden by statute from covering drugs for weight loss. About 7.4 million Americans with obesity could have insurance coverage for GLP-1 weight loss drugs if the Trump administration allows the rule to go into effect.
Top performers contributing to returns include Teva Pharmaceuticals (+22%) and Him & Hers Health (+31%)
Shares of generic drug-maker Teva have risen after launching a generic version of Novo Nordisk’s diabetes drug Victoza amid compounding pharmacy competitive concerns for newer GLP-1 drugs like Wegovy and Zepbound. Him & Hers has also benefited from shortage conditions allowing it to compound generic versions of these drugs.
Detractors on performance for the period included Novo Nordisk (-28%), Eli Lilly (-13%), and Structure Therapeutics (-35%)
Premier GLP-1 drug manufacturer Novo Nordisk missed sales forecasts as its cash cows Ozempic and Wegovy are losing share to competitors like Eli Lilly. Novo’s new next gen drug Cagrisema also had disappointing results. Lilly’s drugs are no longer in shortage according to the FDA which should stop compound pharmacy competition, but it is subject to court approval. Structure Therapeutics stock traded down as a potential Merck acquisition target. Merck instead is developing its own oral GLP-1 drug.
Visit the THNR fund page for more information including fact sheets, insights, index methodology, and regulatory documents.
Index Definition: An index is unmanaged and it’s not possible to invest directly in an index. The VettaFi Weight Loss Drug & Treatment Index is a float-adjusted market cap weighted index comprised of global companies who are manufacturers or enablers of the GLP-1 pharmaceutical business
Carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. This and other information can be found in the Fund’s statutory and summary prospectuses, which may be obtained at AmplifyETFs.com. Read the prospectus carefully before investing.
Fund inception date: 5/21/2024. Total expense ratio is 0.59%. The performance data quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. For most recent month-end performance, visit AmplifyETFs.com/THNR. Brokerage commissions will reduce returns. NAV is the sum of all its assets less any liabilities, divided by the number of shares outstanding. The closing price is the last price at which the fund traded.
You could lose money by investing in the Fund. There can be no assurance that the Fund's investment objectives will be achieved. The Fund is not actively managed. The Fund invests in securities included in its Index regardless of their investment merit and may experience tracking error: the differences in timing of trades, valuation, plus fees and expenses between fund and index.
A non-diversified fund and can invest a greater portion of its assets in securities of individual issuers which could cause greater fluctuations than a diversified fund. A narrowly focused portfolio concentrated in the pharmaceutical industry or healthcare sector, may exhibit higher volatility and be vulnerable to factors affecting them due to regulation, litigation, costs and competition.
Small and/or mid-capitalization companies may be more vulnerable to adverse general market or economic developments. Investments in foreign securities, especially in emerging markets, involve greater volatility and political, economic, and currency risks and differences in accounting methods beyond those of securities of U.S. issuers.
Amplify Investments LLC serves as the investment adviser to the Fund. Penserra Capital Management LLC serves as investment sub-adviser to the Fund. Amplify ETFs are distributed by Foreside Fund Services, LLC.
Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in Amplify Funds statutory and summary prospectus, which may be obtained by calling 855-267-3837 or by visiting AmplifyETFs.com. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Amplify ETFs are distributed by Foreside Fund Services, LLC.