Better Growth Buy: Eli Lilly vs. Viking Therapeutics

Though you may think " stocks" when someone mentions growth, you actually can find growth stocks throughout a wide variety of industries

Even those pharmaceuticals, often known for the steadiness of their earnings, may, through certain specialty areas, offer you the opportunity for explosive growth

And today, the perfect example is weight loss drugs

Today's $28 billion weight loss drug market is on track to reach nearly $100 billion by 2030, according to Goldman Sachs Re, offering companies in the space an extremely solid opportunity over the next several years and ly beyond

The former is a current leader, already selling two blockbuster drugs prescribed for weight loss, and the latter is an up-and-coming player, with a candidate in late-stage trials

Which is the better growth buy today

Image source: Getty Images

The case for Eli Lilly Eli Lilly s weight loss drug market leadership with fellow big pharma player Novo Nordisk

Here, I'll focus on Lilly

The company's drugs, Mounjaro and Zepbound, are actually the same compound, tirzepatide

But it's sold under the name Mounjaro for type 2 diabetes and under the name Zepbound for weight loss

The drug acts by stimulating hormonal pathways involved in the control of blood sugar levels and appetite

Thanks to the efficacy of tirzepatide, demand has soared, even surpassing supply until Lilly expanded its duction capacity

But Lilly isn't sitting still in the area of weight loss

The company also is other drug candidates that may imve upon tirzepatide

The closest to market right now is orforglin, Lilly's oral candidate for weight loss that recently dered positive phase 3 trial results

If apved, it would be the only oral weight loss drug of its class that doesn't require strict food and water restrictions

Lilly aims on applying for regulatory review by the end of this year

All of this could result in more growth for Lilly this year and well into the future

The potential drug, in subcutaneous form, recently entered a phase 3 trial, and an oral form is involved in a phase 2 trial

These candidates are in the same class as tirzepatide, so work in the same way

Investors have shown their excitement Viking's gram in the past: When the company reported positive phase 2 data for the subcutaneous VK2735 last year, the stock soared more than 120% in one trading session

The stock hasn't maintained those gains, but the movement shows that investors are interested in the gram -- and more good news ahead could boost the stock again

Now you might wonder why investors are so excited Viking if there already are other successful weight loss drugs on the market -- and Lilly even is ly to reach commercialization with an oral weight loss drug ahead of Viking

This is because demand is high, and this is set to continue, so there is plenty of room for more than a couple of companies to succeed in the space

Investors also have speculated the idea of a big pharma company acquiring Viking to get in on this high growth market

Should you buy the pharma leader or the bio challenger

Lilly has the first-to-market advantage, is closer to the finish line with an oral candidate, and already is generating major revenue from its weight loss portfolio

Viking, if successful through clinical trials, could carve out market and der major revenue growth down the road -- or the company could be acquired, offering investors another way to potentially gain

Each company offers certain advantages

Now let's answer our question

If all goes well for Viking, it could represent the better growth buy as, starting from zero duct revenue today, this player could see revenue soar if and when it brings a weight loss drug to market

And we've seen that Viking's stock price is very reactive to news, meaning the stock could skyrocket in such a scenario

But, if you go the Viking route, you should be comfortable with risk as uncertainty remains: The company hasn't yet reached the finish line with a duct

If you're more of a cautious investor, though, don't worry

Adria Cimino has no position in any of the stocks mentioned

The Motley Fool has positions in and recommends Goldman Sachs Group

The Motley Fool recommends Novo Nordisk and Viking Therapeutics

The Motley Fool has a disclosure policy.