Key Stats for VKTX Stock
- 1- Day Price Change for VKTX stock: -42%
- Current Share Price: $24.36
- 52-Week High: $81.73
- VKTX Stock Price Target: $89.28
What Happened?
Viking Therapeutics (VKTX) stock plummeted 42% on Tuesday following the release of disappointing Phase II trial results for its oral obesity drug VK2735.
The biotech company’s market cap fell from over $4 billion to approximately $2.69 billion in a single day after investors expressed concern about the drug’s competitive positioning against industry leaders.
While VK2735 showed statistically significant weight loss of up to 12.2% over 13 weeks, the results were overshadowed by high discontinuation rates and concerning side effect profiles.
Approximately 28% of patients discontinued treatment for any reason, with 58% experiencing nausea and 26% experiencing vomiting compared to 48% and 10% respectively, in the placebo group.
The data raised questions about Viking’s ability to compete with Eli Lilly’s orforglipron, which showed 12.4% weight loss at 72 weeks with only 25% discontinuation rates over the much more extended trial period.
VKTX stock CEO Brian Lian acknowledged that the company would likely implement slower titration schedules in future studies to improve tolerability.
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What the Market Is Telling Us About VKTX Stock
The severe selloff in VKTX stock reflects investor disappointment that Viking’s oral obesity pill may not be the competitive differentiator many had hoped for.
Viking was previously viewed as a potential hot M&A target as pharmaceutical giants seek to enter the booming obesity market, but these results could diminish that appeal.
Mizuho health care strategist Jared Holz noted the data “probably shutters hope for Viking to be a big-time player in the oral obesity market over the near to medium term,” pointing to inferior metrics compared to Eli Lilly’s competing oral drug.
The high discontinuation rates and side effect profile suggest Viking’s drug may face significant challenges in gaining market share.
However, Viking emphasized that weight loss appeared progressive through 13 weeks without plateauing, which indicates potential for greater efficacy in longer studies.
Viking also highlighted promising results from an exploratory maintenance dosing arm, where patients transitioned from high to low doses while maintaining weight loss.
With over $800 million in cash and its injectable formulation advancing through Phase III trials, Viking retains resources to optimize its oral program. However, the path forward has become considerably more challenging.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
