Viking Therapeutics soars 31% intraday on upbeat data for its obesity shot
The therapy helped patients to lose up to 22% of their body weight and keep it off
Viking has been developing its own candidate for obesity and type 2 diabetes, VK2735 / Photo: Shutterstock.com / Faizal Ramli
Shares of Viking Therapeutics soared after its experimental dual-action obesity shot helped patients lose weight and keep it off in a small study, Bloomberg reported. The stock rallied as much as 31% in New York trading on Tuesday, its biggest intraday gain since July 2024.
Details
Viking took an unusual approach to analyzing the study, which was designed to identify the optimal dose of a drug that targets two different receptors involved in weight control.
The best results were seen in 11 patients who received an intermediate dose of the drug once a week: they lost 19% of their body weight over around five months. An “exploratory” group of 13 patients who continued receiving a slightly lower dose for another three months lost 22% of their body weight, with no plateau, the company stated.
When patients transitioned to less frequent injections, once or twice a month, some maintained 90-97% of their weight loss. Side effects were mostly mild and declined over time, Viking stated. Just one patient discontinued treatment because of an adverse event, while gastrointestinal side effects during maintenance dosing were similar to placebo.
The results were welcome news for Viking following setbacks in trials last year.
Context
Viking’s drug, called VK2735, targets receptors for glucagon-like peptide 1, or GLP-1, and glucose-dependent insulinotropic polypeptide, or GIP, which are linked to weight regulation. The company is developing both injectable and oral versions of the therapy. Eli Lilly and Novo Nordisk currently dominate the obesity-drug market, and Viking’s stock performance reflects intense investor interest in alternative treatments, Bloomberg notes.
Ahead of the study results, Oppenheimer on Monday reiterated its “outperform” rating at a target price of $100 per share, according to Investing.com. The target price implies 232% upside from Monday’s close. Oppenheimer believes VK2735 should compete effectively with Eli Lilly’s products on long-term persistence, flexibility, convenience, and continuity of care.
