Viking Therapeutics, a small biotech company, saw its stock surge over 25% following positive results from a small study on its experimental weight loss pill. The company plans to enter the next stage of development later this year, adding to the excitement around its prospects in the weight loss drug market. Analysts believe that this market could grow into a $100 billion industry by the end of the decade.
Viking Therapeutics is competing with giants like Novo Nordisk and Eli Lilly in the weight loss drug market. However, some analysts view Viking as a strong potential player or takeover target for a larger company. The positive results from the study have further fueled optimism about Viking’s potential, leading to a 345% increase in its shares this year.
The phase one trial for Viking’s weight loss pill involved more than 40 patients with obesity. The results showed that patients who received the pill once a day lost up to 5.3% of their weight on average, compared to those who took a placebo. Additionally, up to 57% of patients who received Viking’s pill lost at least 5% of their body weight, while none of the placebo group achieved that level of weight loss.
Furthermore, patients who received higher doses of the experimental pill appeared to maintain or add to their weight loss even after six days without the drug. This sustained weight loss may be encouraging to patients who may miss a dose due to travel or lack of access to their medication.
Viking CEO Brian Lian mentioned during a conference call that it is unclear how durable the weight loss is. However, he emphasized that the sustained weight loss seen in the trial is a positive sign. Viking believes that treating patients beyond 28 days may lead to further reductions in body weight.
The trial also indicated that the pill is safe and tolerable to take, with the majority of side effects being mild in severity. Gastrointestinal events, such as nausea and vomiting, were mild and less frequent compared to other weight loss and diabetes treatments. Notably, patients who took the placebo reported diarrhea more frequently than those treated with the oral drug.
Analysts have compared Viking’s weight loss injection to Eli Lilly’s injectable drug Zepbound because both drugs imitate naturally produced gut hormones called GLP-1 and GIP. GLP-1 helps reduce food intake and appetite, while GIP suppresses appetite and may improve how the body breaks down sugar and fat. In comparison, Novo Nordisk’s weight loss injection Wegovy only targets GLP-1.
Overall, Viking Therapeutics’ positive results from the study have generated significant excitement in the weight loss drug market. With its potential to compete with industry giants and the possibility of further developments in the pipeline, Viking Therapeutics is certainly a company to watch in this rapidly growing sector.
