As concerns over the profitability of AI shook tech and semiconductor stocks, ETFs (exchange-traded funds) investing in global major pharmaceutical companies are emerging. This is because global Big Pharma stocks have a strong defensive character. In particular, expectations are growing as the performance of obesity treatment development companies has grown significantly.
According to KOSCOM ETF Check on the 3rd, as of that day, the one-month return rate (based on reinvestment of distributions) of 'RISE Global Obesity Industry TOP2+' was 14.24%, ranking second in returns among all ETFs (excluding leverage and inverse).
Others also ranked high in returns, including 'TIGER Global Obesity Treatment TOP2Plus' (12.46%), 'ACE Global Big Pharma' (11.6%), 'TIGER S&P Global Healthcare (Synthetic)' (10.75%), 'KODEX Global Obesity Treatment TOP2 Plus' (10.61%), 'ACE Eli Lilly Value Chain' (10.37%), and 'KODEX US S&P 500 Healthcare' (10.25%).
Kim Min-su, team leader of the Global ETF Management Team at Mirae Asset Asset Management, explained, "This is due to the expansion of sales by leading obesity treatment companies being confirmed in performance, and continued expectations for next-generation treatment development."
Eli Lilly, which developed the obesity treatment 'Mounjaro,' had third-quarter revenue of $24.4 billion (approximately 32.6862 trillion won), a 38.6% increase year-on-year. EPS (earnings per share) was $7.48, up 6.6%. Revenue exceeded market consensus estimates by 1.1%, and EPS by 31.7%.
Sales of the obesity treatments Mounjaro and Zepbound drove performance. In particular, Mounjaro became the top-selling drug this year, surpassing the immunotherapy 'Keytruda.' As a result, Eli Lilly's stock price rose 23.46% over one month as of the 2nd.
Novo Nordisk ADR (American Depositary Receipt), the developer of the obesity treatment 'Wegovy,' also rose 8.39% over the same period. Global Big Pharma companies such as AstraZeneca, Amgen, and AbbVie rose by 18.92%, 15.48%, and 9.9%, respectively.
The recent increase in stock market volatility due to concerns over AI profitability and interest rate hikes also worked positively for global Big Pharma stocks. Unlike domestic biotech stocks, global Big Pharma stocks are considered defensive against economic cycles. Pharmaceuticals are products that must be consumed even if the economy worsens, and global Big Pharma companies have secured pharmaceuticals that generate stable profits.
In addition, following the European Society for Medical Oncology (ESMO) held at the end of last month, the ObesityWeeks conference will be held this month. The JPMorgan Healthcare Conference will be held in January next year. Analysis suggests that global Big Pharma stock prices could rise if clinical trial results are announced at various academic conferences and events.
Ha Heon-ho, a researcher at Shinhan Investment Corp, said, "As concerns across the entire stock market are highlighted, the appeal of global major pharmaceutical companies with relatively low volatility is increasing," adding, "Major events at the end of this year and early next year are expected to act as additional drivers for further gains."
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