Two Under-the-Radar Biotech Stocks with Potential in Anti-Obesity Market

The anti-obesity drug market, though nascent, is rapidly expanding and attracting significant attention from pharmaceutical companies. While oncology remains the largest therapeutic area by revenue, the potential for growth in weight-loss treatments has spurred both large and small drugmakers into action.

Terns Pharmaceuticals (TERN) and Rhythm Pharmaceuticals (RYTM) emerge as lesser-known biotechs with promising pipelines. Terns recently initiated a phase 2 trial for TERN-601, an oral GLP-1 therapy that could disrupt the current injection-dominated market. Oral alternatives offer cost advantages and broader patient accessibility—factors that may drive commercial success.

Rhythm Pharmaceuticals focuses on rare genetic disorders of obesity, carving a niche with targeted therapies. Both companies face binary outcomes: clinical success could deliver outsized returns, while failures may leave them struggling in a competitive landscape.