The weight loss drug industry is burgeoning with innovation and the Roundhill GLP-1 & Weight Loss ETF (OZEM) is at the forefront of this medical revolution. Since the start of 2025, OZEM is up 28.62%, sharply outpacing the S&P 500 Health Care Sector (8.55%) and the broader S&P 500 Index (12.76%).
We see several powerful tailwinds underpinning the GLP-1 and weight-loss drug revolution:
There are currently two major players with a decisive head start in the obesity drug space: Eli Lilly (LLY) and Novo Nordisk (NVO). Eli Lilly offers Mounjaro and Zepbound, while Novo Nordisk’s portfolio includes Ozempic, Wegovy, and Saxenda. The catchy Broadway-inspired commercials may lead you to believe that Novo Nordisk is the clear leader between the two, but the reality is quite the opposite.
Eli Lilly has been aggressively taking market share from Novo Nordisk over the past two years and, according to Bloomberg estimates, is expected to continue doing so through the first half of 2026. Mounjaro and Zepbound account for roughly $36.5 billion of Eli Lilly’s ~$65.2 billion in 2025 revenue. At the drug level, Mounjaro accounts for 35.2% of total revenue, while Zepbound accounts for 20.8%.
Meanwhile, Novo Nordisk’s obesity drug franchise has flattened from a revenue perspective. With Ozempic, Wegovy, and Saxenda accounting for nearly 75% of Novo Nordisk’s revenue, the slowdown has weighed on company shares. Since 12/31/2023, LLY has surged roughly 66%, while NVO has fallen about 61%, a spread of nearly 128%.
While Novo Nordisk is currently on the defensive, we are hesitant to declare the race over. The company recently resolved its legal dispute with Hims & Hers Health (HIMS) and is now partnering to offer Ozempic (injections) and Wegovy (both pills and injections), potentially reaching a broader audience in need through expanded distribution.
The shift from adversary to partner underscores how seriously Novo Nordisk is approaching the competitive landscape. As competition intensifies and new distribution models emerge, innovation across the obesity drug industry continues to accelerate.
Beyond today’s leading therapies like Mounjaro, Zepbound, Ozempic, and Wegovy, a robust pipeline of next-generation obesity drugs is advancing through clinical development, with several candidates already filed for regulatory approval. Currently, 30 drugs are in Phase III trials, 73 are in Phase II, and 82 are in Phase I.
The innovation potential is compelling. New therapies are exploring alternative mechanisms for targeting obesity and promoting weight loss, as well as new methods of administration that could be more convenient and discreet for patients. In addition, several candidates are being designed with the goal of improving safety profiles while maintaining strong weight-loss efficacy.
Taken together, this expanding pipeline suggests the obesity drug market may ultimately reach far beyond today’s therapies as new treatments broaden access and expand the addressable patient population.
Weight loss drug adoption is gaining momentum. An October 2025 Gallup survey shows that the U.S. adult usage of weight-loss medications has more than doubled from 5.8% in early 2024 to 12.4% in 2Q/3Q 2025. Anticipated adoption in the U.S. alone exemplifies the growth potential, with approximately 30 million Americans projected to be on GLP-1 treatment by 2030.
But it’s not just a U.S. story: J.P. Morgan Global Research forecasts that the global incretin market (drugs based on hormones like GLP-1 that regulate blood sugar and appetite) could reach $200 billion by 2030.
The GLP-1 revolution is still in the early stages. Market leaders LLY and NVO are aggressively pursuing growth of their respective weight loss drug portfolios as the global obesity drug pipeline teems with potential disruptors. The growing market of U.S. and global patients illustrates the significant runway that remains for obesity treatments and the companies developing them. The Roundhill GLP-1 & Weight Loss ETF (OZEM) seeks to gain exposure to companies pioneering the development of cutting-edge weight loss treatments.
Learn More: https://www.roundhillinvestments.com/etf/ozem/
Glossary
The S&P 500® Health Care Index comprises those companies included in the S&P 500 that are classified as members of the GICS® health care sector.
The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities and serves as the foundation for a wide range of investment products. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization.
Investors should consider the investment objectives, risk, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about Roundhill ETFs please call 1-855-561-5728 or visit the website at www.roundhillinvestments.com/etf/OZEM. Read the prospectus or summary prospectus carefully before investing.
Health Care Companies Risk. Health care companies, such as companies providing medical and healthcare goods and services, companies engaged in manufacturing medical equipment, supplies and pharmaceuticals, as well as operating health care facilities and the provision of managed health care, may be affected by government regulations and government health care programs, increases or decreases in the cost of medical products and services and product liability claims, among other factors. Many health care companies are heavily dependent on patent protection, and the expiration of a company’s patent may adversely affect that company’s profitability. Health care companies are also subject to competitive forces that may result in price discounting, may be thinly capitalized and susceptible to product obsolescence.
Pharmaceutical Companies Risk. The Fund may have significant exposure to pharmaceutical companies in connection with its investments in GLP-1 & Weight Loss Companies. Pharmaceuticals companies may be affected by industry competition, dependency on a limited number of products, obsolescence of products, government approvals and regulations, loss or impairment of intellectual property rights and litigation regarding product liability. Pharmaceutical are subject to competitive forces that may make it difficult to raise prices of their products and may result in price discounting. The profitability of some pharmaceuticals companies may be dependent on a relatively limited number of products. The research and development costs required to bring a new product to market are substantial with no guarantee that the product will ever become profitable. Many new products are subject to gaining the approval of the U.S. Food and Drug Administration (“FDA”), which can be long and costly. Many pharmaceutical companies are heavily dependent on patents and intellectual property rights. The loss or impairment of these rights may adversely affect the profitability of these companies. Pharmaceuticals companies may also be subject to extensive litigation based on product liability and similar claims.
Biotechnology Companies Risk. The Fund may have significant exposure to biotechnology companies in connection with its investments in GLP-1 & Weight Loss Companies. Biotechnology companies invest heavily in research and development which may not necessarily lead to commercially successful products. Biotechnology companies are subject to increased governmental regulation which may delay or inhibit the release of new products. The effects of high development costs and increased regulation may be exacerbated by a company’s inability to raise prices to cover costs because of managed care pressure or price controls. Many biotechnology companies are dependent upon their ability to use and enforce intellectual property rights and patents. Any impairment of such rights may have adverse financial consequences. Biotechnology stocks, especially those issued by smaller, less-seasoned companies, tend to be more volatile than the overall market. Biotechnology companies can also be significantly affected by technological change and obsolescence, product liability lawsuits and consequential high insurance costs.
Concentration Risk. The Fund is concentrated in the industry or group of industries comprising the health care sector. The Fund may be susceptible to an increased risk of loss, including losses due to adverse events that affect the Fund’s investments more than the market as a whole, to the extent that the Fund’s investments are concentrated in the securities and/or other assets of a particular issuer or issuers, country, group of countries, region, market, industry, group of industries, sector, market segment or asset class.
New Fund Risk. The Fund is a recently organized investment company with a limited operating history. As a result, prospective investors have a limited track record or history on which to base their investment decision.
Roundhill Financial Inc. serves as the investment advisor. The Funds are distributed by Foreside Fund Services, LLC which is not affiliated with Roundhill Financial Inc., U.S. Bank, or any of their affiliates.