Analyst names obesity drug developer 'who can't be ignored'

Risk-tolerant investors "should not ignore" the securities of biotech Viking Therapeutics, says Motley Fool analyst Adria Cimino. The company is developing an obesity drug that has a good chance of competing with Novo Nordisk's Wegovy and Eli Lilly's Zepbound blockbusters in the near future, she explains.

Motley Fool analyst Adria Cimino advised investors not to ignore Viking Therapeutics stock. It is developing obesity drug VK2735, and in two forms at once - tablet and injection. The drug is now in the third and final stage of clinical trials.

If they are successful, Viking's therapy could take a prominent place in the obesity drug market in the near future, the article says. Currently, 95% of this market is shared by two drugs - semaglutide (active ingredient Wegovy from Novo Nordisk) and tirzepatide (active ingredient Zepbound from Eli Lilly).

Cimino also draws investors' attention to the fact that Viking's stock price always reacts to positive company news. This was the case a few years ago: when the company first reported positive results from a Phase 2 clinical trial of VK2735, its stock soared 121% in a single trading session.

Should regulators approve VK2735, the company's revenue and earnings could grow substantially - as could its share price in the long term, concludes the Motley Fool analyst. She also points out that speculation from a number of investors and analysts that Viking could become a takeover target. That would also bring investors a profit, Cimino notes.

However, she points out the risks of trial failures inherent in all biotech companies, so she advises Viking stock only to risk-ready investors.

Since the beginning of the year, Viking's quotes have fallen 18.3%.

However, Wall Street believes in the company's prospects, with 17 analysts advising to buy its securities and only one advising to hold.

In October 2025, investment bank Canaccord first rated the issuer's stock and immediately advised buying it. At the time, it called Viking "one of the leading biotech companies in the field of obesity drug development".

The average target price for the company's securities is $93.4, a potential upside of more than 3 times their closing price on Feb. 10.