Biotech interest shifting from obesity ‘halo’ to other areas like oncology and blood cancers

Analysts describe a strong ‘obesity halo’ over the last 1–2 years, where companies with any obesity angle found it easier to raise capital and boost valuations, even if obesity was only a small part of their pipeline.6

Experts expect 2025 funding to keep favoring next‑generation obesity drugs (GLP‑1 combinations, oral small molecules, novel mechanisms), but with investors becoming more selective and focusing on clearly differentiated assets rather than every GLP‑1 story.146

The current obesity market is seen as a duopoly dominated by Novo Nordisk and Eli Lilly, making it hard for smaller biotechs to compete directly unless they have highly novel or best‑in‑class approaches.45

Industry commentary notes that some biotechs are starting to pivot away from crowded spaces or overhyped themes once the ‘halo’ fades, redeploying resources into less crowded but still high‑value areas such as autoimmune disease, oncology, or other specialty indications.46

A separate, high‑value oncology market continues to evolve in parallel, including hematologic malignancies like leukemias, where Novartis is a major incumbent with targeted therapies and cell‑based approaches, but recent coverage does not highlight a direct wave of obesity‑focused biotechs pivoting en masse into leukemia specifically.4

Strategically, investors and analysts suggest that biotechs can compete more effectively with large pharma by focusing on differentiated mechanisms or niche indications rather than head‑to‑head competition in broad obesity or diabetes markets; in oncology this often means highly specific molecular subtypes or next‑generation cell and gene therapies.46

Taken together, recent reports support a broader shift in capital and R&D focus—away from generic participation in the obesity boom toward carefully chosen areas including oncology—yet there is no concrete evidence that this trend is explicitly framed as a coordinated attempt by ex‑obesity biotechs to challenge Novartis in leukemia.

Sources:

1. https://www.labiotech.eu/best-biotech/obesity-deals-2025/

4. https://www.biospace.com/business/2025-investment-to-swing-toward-i-i-obesity-more-experts

5. https://guidehouse.com/insights/healthcare/2025/evolving-market-for-obesity-treatments

6. https://www.iqvia.com/locations/emea/blogs/2025/01/outlook-for-obesity-in-2025-more-than-a-transition-year