GLP-1 Demand Is Soaring. 2 Stocks That Could Benefit From This (Hint: Not Eli Lilly or Novo Nordisk)

Regeneron has a pair of promising GLP-1 candidates in the pipeline.

Both biotechs are performing well beyond their work in this therapeutic area.

Demand for GLP-1 drugs is exploding. While medicines in this category traditionally treated diabetes, they are now being approved to manage other conditions, including obesity and obstructive sleep apnea. Further, based on pipeline programs across the pharmaceutical industry, we can expect GLP-1 therapies to eventually earn approvals across many other areas. Several companies could capitalize on this. The current leaders in the field are Eli Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO) , but there are other drugmakers to look at, such as Amgen (NASDAQ: AMGN) and Regeneron (NASDAQ: REGN) . Here is why investors interested in cashing in on the GLP-1 boom should consider these two stocks.

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Amgen is performing well this year. The stock is up 27% to date. The company's financial results have been pretty strong. In the second quarter, Amgen's revenue increased by 10% year over year to $10.1 billion. Adjusted earnings per share (EPS) were $6.29, up 4% compared to the year-ago period.

Last year, Amgen lost patent exclusivity for denosumab, a medicine that treats several bone-related conditions, and is now facing biosimilar competition. This wasn't a minor patent cliff for the biotech leader . Denosumab accounted for about 18% of Amgen's revenue last year.

However, the company is overcoming that challenge thanks to several other growth drivers, including Tepezza, a medicine for thyroid eye disease, and Tezspire, a treatment for asthma. Things could get even better for Amgen if it earns approval for MariTide, an investigational GLP-1 medicine. MariTide is being tested in phase 3 studies in weight management, diabetes, and several other conditions.

Provided the drug passes these clinical trials with flying colors, Amgen could be looking at an important long-term growth driver. It's also worth noting that MariTide could be administered monthly or even less frequently, a significant advantage compared to the daily or weekly anti-obesity treatments currently on the market. Patients are willing to pay a price for convenience. That price may be lower efficacy.