Viking Therapeutics, a small obesity drugmaker, experienced a significant surge in its stock price, closing more than 120% higher on Tuesday. This surge came after the company’s experimental weight loss drug, VK2735, showed promising initial results in a mid-stage trial. The trial included over 170 patients with obesity or who were overweight, and those who received weekly doses of the treatment lost up to 14.7% of their body weight from baseline after 13 weeks.
The success of Viking Therapeutics’ weight loss drug trial is significant for both the company and the weight loss drug industry as a whole. Analysts predict that the weight loss drug market could grow into a $100 billion industry by the end of the decade. With the potential for such growth, larger pharmaceutical companies like Pfizer, which recently scrapped two of its own weight loss drug candidates, may be interested in partnering with or acquiring smaller companies like Viking Therapeutics.
The positive outcomes of the trial also suggest that Viking Therapeutics’ weight loss drug could be a strong contender in the market. Up to 88% of patients who received the drug achieved at least a 10% weight loss, compared to just 4% of those who did not receive the treatment. Furthermore, there was no evidence of a plateau in weight reduction at week 13, indicating that further weight loss could be achieved by prolonging the treatment.
Safety was also a key consideration in the trial, and the drug demonstrated “encouraging” safety profiles in patients. The majority of adverse events experienced by patients were mild or moderate in severity and were commonly seen across all weight loss and diabetes treatments, such as gastrointestinal issues like nausea, vomiting, diarrhea, and constipation.
Viking Therapeutics plans to present the full Phase 2 data at medical conferences and will also meet with the Food and Drug Administration (FDA) to discuss further steps for the development of VK2735. Additionally, the company expects to release early-stage trial data on an oral version of its weight loss drug.
This promising data from Viking Therapeutics suggests that the weight loss drug market may soon become less of a “duopoly” dominated by Novo Nordisk and Eli Lilly, who currently manufacture the most sought-after treatments. However, the analysts note that manufacturing these treatments at scale to meet the growing demand has proven challenging, giving Novo Nordisk and Eli Lilly a defensive advantage.
Overall, Viking Therapeutics’ successful weight loss drug trial outcomes have generated excitement and optimism in the industry. As the obesity epidemic continues to grow, effective weight loss medications are in high demand. With its promising initial results, Viking Therapeutics is well-positioned to make a significant impact in the weight loss drug market and attract potential partnerships or acquisitions from larger pharmaceutical companies.
