Hethe exchange-traded fund platform, has launched a healthcare ETF focused on companies that research and treat cardiovascular disease and conditions associated with obesity and diabetes, including Novo Nordisk, maker of the blockbuster diet drug Ozempic .
THE Tema Cardiovascular and Metabolic ETF (NASDAQ: HRST) will debut on the NASDAQ stock exchange on Tuesday and will seek to capitalize on the massive popularity of a new breed of drugs called semaglutides, which include Novo NorkDisk(NYSE: NVO) Ozempic and Wegovy and Elie Lilly(NYSE: LLY) Mounjaro.
“Cardiovascular and metabolic diseases are closely linked, combining a larger, well-established area of healthcare with a new and growing biopharmaceutical sector: obesity,” said Pot Mauritsco-founder and CEO of TEMA.
“This field has recently announced and launched several breakthrough therapies, highlighting the pace of innovation that we believe will transform patients’ lives and outcomes.
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A new breed of miracle drugs
Semaglutides have, during their short history, become the new miracle drug. Mimicking the effect of appetite-suppressing hormones, these medications slow digestion, leaving patients feeling full longer after meals and contributing to 15 to 20 percent weight loss in obese people.
They have also been shown to protect major organs such as the heart, liver and kidneys, which experience added strain due to obesity.
Ozempic has become so popular as a weight-loss drug that some countries have considered banning exports due to shortages for the treatment of diabetes.
The absence of an approved semaglutide in your product line has proven critical, a fact reflected by recent stock price fluctuations. Since Eli Lilly launched Mounjaro in May 2022, its shares have surged nearly 80%, while Novo Nordisk, with two semaglutides on the market, is up 281% since Ozempic launched in 2019. revenge, Pfizer (NYSE:PFE), which does not have semaglutide in its portfolio, is down 51% since hitting a record high in December 2021.
Investing in a $1 Trillion a Year Industry
Tema also sees the HRST ETF as a way to invest in the treatment of cardiovascular disease, the leading cause of death worldwide and a $1 trillion-a-year industry. Additionally, the ETF’s portfolio companies include The fields (NASDAQ:MASI) and Madrigal Pharmaceuticals (NASDAQ:MDGL)
HRST’s portfolio manager is David Song, who previously managed Rockefeller Capital’s healthcare fund strategy for a decade.
“The breakthrough in obesity treatments leads us to believe there could be significant growth given the large patient pool and currently low penetration rates,” he said.
The launch of the HRST ETF follows the debut of Tema Oncology ETF (NASDAQ:CANC) on the NASDAQ on August 15. Since its launch, CANC has lost nearly 6%
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