Viking Therapeutics surged approximately 80% on Tuesday following the announcement of promising results from its mid-stage trial of an experimental weight loss drug. The drug, known as VK2735, demonstrated significant efficacy in reducing body weight in patients with obesity or who are overweight.
During the 13-week trial, patients who received weekly doses of VK2735 experienced weight loss of up to 14.7% from baseline, with 88% achieving at least 10% weight loss. These results outperformed the placebo group by a significant margin. Importantly, there was no evidence of a plateau in weight reduction, suggesting the potential for further weight loss with continued treatment.
Viking Therapeutics CEO Brian Lian highlighted the drug’s “encouraging” safety profile, with most adverse events being mild or moderate, and a low discontinuation rate compared to the placebo group.
Analysts have noted the potential for Viking Therapeutics to be acquired by larger pharmaceutical companies looking to enter the weight loss drug market, which is projected to reach $100 billion by the end of the decade. The company’s market value has surged to approximately $7 billion following the positive trial results.
Viking Therapeutics plans to present the full phase 2 data at medical conferences and is scheduled to meet with the FDA to discuss further development of VK2735. Additionally, the company expects to release early-stage trial data on an oral version of its weight loss drug, targeting GLP-1 and GIP hormones, similar to Eli Lilly’s Zepbound and Mounjaro drugs.
Despite the potential for competition from Novo Nordisk and Eli Lilly, who dominate the weight loss and diabetes drug market, analysts believe Viking Therapeutics’ new data suggests room for additional players in the market. However, challenges in manufacturing at scale may give Novo Nordisk and Eli Lilly a competitive advantage.
(Source: Bloomberg | Market Watch)
