An analyst named two companies that Novo should acquire to compete with Lilly

Pharmaceutical giant Novo Nordisk should take a closer look at two small drug developers focused on treating obesity—Kailera Therapeutics and Viking Therapeutics— according to Prosper Junior Bakini, a freelance analyst at The Motley Fool.

Purchasing one of them would allow Novo Nordisk to solve its main problem related to intensifying competition, he explains. The Danish pharmaceutical giant derives most of its revenue from drugs for diabetes and obesity, but the entry of the American company Eli Lilly into this market has significantly undermined its position. The situation is further complicated by the fact that other pharmaceutical companies could disrupt this duopoly in the next few years with their own entirely new developments.

Kailera, with a market capitalization of $1.48 billion, has attracted investors’ attention ever since its initial public offering in April 2026. At the time, its IPO was the largest in the biotechnology sector, which, according to Bakini, is not surprising at all. Kailera’s portfolio includes several weight-loss products, for which it obtained licenses from its Chinese partner, Jiangsu Hengrui Pharmaceuticals.

The lead drug candidate for Kailera—ribupatide—works on the same principle as Eli Lilly’s Zepbound and is being developed in both injectable and tablet forms. Ribupatide injections are currently in the third and final phase of clinical trials, with results expected in 2028, the analyst notes.

The company has other developments in this area, including KAI-4729, which mimics the action of three hormones at once (like Eli Lilly’s experimental retatrutide), which could potentially lead to significant weight loss.

Thus, according to Bakini, Kailera is an attractive acquisition target for any company seeking to strengthen its position in this market.

Five Wall Street analysts are tracking Kailer, and all recommend buying its stock. The average price target is $42.8, which implies a 275% upside from the closing price on September 30.

Viking, with a market capitalization of $4.11 billion, — is also a prominent developer of anti-obesity drugs: its VK2735 injections showed excellent results in the second (intermediate) phase of clinical trials and are now in the third phase, Bakini writes. The company is also developing VK2735 in tablet form, with the final phase of trials scheduled to begin this year.

In addition, Viking has begun clinical trials of a new weight-loss drug, VK3019, which mimics the hormones amylin and calcitonin. This is what sets it apart from the therapies developed by Novo Nordisk and Eli Lilly.

In theory, the analyst writes, Viking could combine both compounds—VK3019 and VK2735—which would allow them to target four hormones at once. Although that is still a long way off, this possibility makes the biotech company an attractive takeover target, Bakini believes.

In total, Viking’s stock has 18 “buy” recommendations from Wall Street analysts and two “hold” recommendations. The average price target is $95.7, which is 194% higher than the stock’s closing price on September 30.