Eli Lilly and Novo Nordisk Can't Treat This Form of Obesity. Billionaire Stanley Druckenmiller Is Betting Rhythm Pharmaceuticals Can

Published August 23, 2026 · Category: Finance

Overview

Eli Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO) are currently the leaders in the weight loss market. Their medicines have proved highly effective and generate billions in annual sales. However, drugs such as Wegovy and Zepbound are intended to treat patients with common forms of obesity. A little-known biotech, Rhythm Pharmaceuticals (NASDAQ: RYTM), has developed medicines for rare forms of obesity caused by genetic disorders or by damage to brain regions that control hunger.

This is a niche neither Eli Lilly nor Novo Nordisk targets, and it could make Rhythm Pharmaceuticals successful. Rhythm Pharmaceuticals got a major vote of confidence when, in the second quarter, Duquesne Family Office, an investment management firm founded by the billionaire Stanley Druckenmiller, initiated a position in the stock. Should investors do the same?

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Originally published at www.fool.com.

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