The excitement around new drugs that can help people shed weight quickly has created a banner week for certain health care ETFs. The iShares U.S. Pharmaceuticals ETF (IHE) is up 4.7% for the week. That would be its best stretch since the week ended June 24, 2022, when the fund gained 8.3%, according to FactSet. IHE 5D mountain The iShares fund focused on drugmakers is on track for its best week of the year. The strong performance has been driven by Eli Lilly , which now accounts for nearly 25% of the fund. The pharmaceutical giant has seen its stock rise more than 40% so far this year. That includes a jump of nearly 15% on Tuesday after the company beat expectations for earnings and revenue for the second quarter and raised its full year guidance. The company’s results were powered by strong demand for Mounjaro, the diabetes drug that also appears to help people lose weight. A trial from Danish company Novo Nordisk that showed its competitor drug Wegovy reduced the chances of cardiovascular events may also have improved the outlook for Mounjaro in the eyes of investors. If both drugs reduce the odds of heart attack and stroke, they may be more likely to be covered by government and private health insurance plans . Wegovy is a sister drug to Ozempic. Zoetis , the third largest holding in the iShares fund, has rallied more than 6% this week after its second-quarter report. Meanwhile, the VanEck Pharmaceutical ETF (PPH) has gained more than 4% so far this week, which would also be its best week of the year.
