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
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.