Viking Therapeutics’ stock has seen a significant surge as investors eagerly embrace the affordable opportunity presented by the company’s weight-loss drug trend. The stock soared 120% to a record high after positive results were announced from a Phase 2 trial of Viking’s weight-loss drug VK2735. The drug, which is being developed as both an injectable and oral treatment for obesity and diabetes, showed statistically significant reductions in body weight compared to a placebo. Patients receiving weekly doses of VK2735 lost up to 14.7% of their body weight after 13 weeks.
The news of the successful trial results prompted Maxim analysts to raise their price target for Viking Therapeutics’ stock to $120 from $50. The trial met all primary and secondary endpoints, and the treatment was deemed safe and well-tolerated, with most adverse events being mild or moderate gastrointestinal issues. The drug also demonstrated a high success rate, with up to 88% of patients in VK2735 treatment groups achieving a weight loss of at least 10%, compared to only 4% for the placebo group.
Investors were particularly excited about Viking Therapeutics’ stock because it offered a more affordable entry into the weight-loss drug trend compared to industry leaders Eli Lilly and Novo Nordisk. Viking’s stock is currently trading at $74.34, while Eli Lilly’s stock is above $764 and Novo Nordisk’s ADR is above $121. Analysts polled by FactSet have given Viking’s stock buy ratings, and consensus sales estimates for the company through 2026 show a steady increase from zero in 2024 to $58 million in 2026.
Analysts from William Blair also praised Viking Therapeutics’ results, stating that VK2735 outperformed expectations and had a best-in-class profile among approved and investigational agents with Phase 2 data. They believe that VK2735 has the potential to exhibit a better efficacy profile than Eli Lilly’s Zepbound. Viking’s injectable and oral treatments use the same mechanism as Novo Nordisk’s Wegovy and Ozempic and Eli Lilly’s Mounjaro, mimicking the effects of GLP-1, a gut hormone that helps control blood-sugar levels and reduce appetite.
Viking Therapeutics has also been developing a treatment for NASH (nonalcoholic steatohepatitis), a more severe version of nonalcoholic fatty liver disease. The company believes that the mechanism behind VK2735 could be applicable for use in NASH as well, potentially providing an additional indication for the treatment.
Overall, Viking Therapeutics’ stock surge reflects the excitement and optimism surrounding the positive results from its Phase 2 trial of VK2735. With promising efficacy and a more affordable option for investors, Viking Therapeutics is poised to make a significant impact in the weight-loss drug market.
