Viking Therapeutics, a biotech company based in San Diego, saw its stock soar by over 20% on Thursday following the announcement that it plans to fast-track its experimental weight loss injection into a late-stage trial. This move brings the company one step closer to entering the rapidly growing market for GLP-1s, a class of drugs used for weight loss and diabetes treatment. Analysts predict that this market could reach a value of $150 billion by the end of the decade.
Viking is not alone in its pursuit of a share in this lucrative market. It will be competing against established players like Novo Nordisk and Eli Lilly, whose GLP-1 drugs have experienced a surge in demand over the past couple of years. As a result of Viking’s announcement, shares of both Novo Nordisk and Eli Lilly experienced a slight decline of more than 1% on Thursday.
Previously, Viking had planned to conduct another mid-stage trial for its weekly injection, VK2735, after reporting positive results from a phase two study in February. However, after receiving feedback from the Food and Drug Administration (FDA), the company has decided to skip this mid-stage trial and move directly into a phase three trial. Viking’s CEO, Brian Lian, revealed this decision during an earnings call, stating that the company is preparing to meet with the FDA in the fourth quarter to discuss the design and timing of the phase three trial. The study is expected to commence after these discussions.
This strategic decision to skip the mid-stage trial is expected to accelerate Viking’s development timeline for the injection. BTIG analyst Justin Zelin estimates that the drug could be launched as early as 2029, a year sooner than previously anticipated. Additionally, Lian mentioned during the call that Viking plans to explore the possibility of testing VK2735 as a monthly injection in a future study. This potential monthly dosing option could provide patients with a more convenient alternative to Eli Lilly’s Zepbound and Novo Nordisk’s Wegovy, both of which require weekly administration.
Viking’s weight loss drug works by targeting a GLP-1 hormone and another hormone called GIP. These are the same hormones that Eli Lilly’s Zepbound and its diabetes counterpart, Mounjaro, also target. In a phase two trial, patients who received weekly doses of Viking’s injection experienced weight loss of up to 14.7% of their body weight, or 13.1% when compared to a placebo, after 13 weeks. In addition to the injection, Viking is also developing an oral version of VK2735. In an early-stage trial, this pill demonstrated a weight loss effect of 3.3% when compared to a placebo.
Overall, Viking Therapeutics’ decision to accelerate the development of its weight loss injection has generated significant market excitement and investor interest. By entering the highly competitive market for GLP-1s, the company has the potential to capture a share of the projected $150 billion market. With promising clinical trial results and the exploration of a more convenient dosing option, Viking is positioning itself as a formidable player in the weight loss and diabetes treatment space.
