When there's a new gold rush in an area of biopharma, it often makes sense to diversify your bets as the probability of failure by any individual aspiring drug developer is likely quite high.

On that note, you've probably heard of Novo Nordisk's (NYSE: NVO) blockbuster drug for type 2 diabetes called Ozempic, which it also markets under the name Wegovy as a treatment for obesity. Ozempic was worth $8.5 billion in sales in 2022, and it's just getting started -- but there's a deluge of competing products attempting to enter the same market over the next few years.

Enter Structure Therapeutics, (NASDAQ: GPCR) one of those small-but-enterprising competitors attempting to make medicines that'll contest Ozempic's niche. Simply by dint of being a much smaller company without any revenue, even a modest success with its candidate could lead to a home run for shareholders. But that entails a handful of risks that should guide your decision about whether or not to buy it.

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Source Fool.com