Key Points
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Viking’s VK2735 has advantages over other weight-loss drugs, and investors anticipate positive results from Phase 3 trials in the coming years.
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The development of VK2735 as a dual formulation therapy could be the key to unlocking value for investors.
- 10 stocks we like better than Viking Therapeutics ›
Viking Therapeutics (NASDAQ: VKTX) stock rose by 19.2% in June, according to data from S&P Global Market Intelligence. The move comes as optimism rises over the company’s pipeline development program, notably in weight-loss drugs, and the initiation of a Phase 1 study in a new class of weight-loss drugs that offers a different mechanism from the current GLP-1/GIP class.
Viking Therapeutics and VK2735
Speaking of GLP-1/GIP class drugs, Viking’s lead drug candidate, VK2735, is a GLP-1/GIP agonist. It’s part of a crowded field that includes blockbuster weight loss drugs from Eli Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO).
That said, VK2735 does have some distinguishing characteristics that mark it out from rivals. As previously discussed, VK2735 has demonstrated a steeper rate of weight loss in the treated groups in Phase 2 clinical trials for both oral and injectable formulations. The hope is that Viking will demonstrate similar efficacy with no safety or tolerability issues in the ongoing Phase 3 trial for injectable VK2735, as well as in the Phase 3 trial for oral VK2735, which is due to start later this year. Investors will probably have to wait until 2027 and 2028, respectively, for the results of those trials.
The second major plus about VK2735 is that it’s being developed as a dual-formulation therapy, with the potential for an initial injectable dose to achieve rapid weight loss, followed by an orally administered maintenance dose. In fact, Viking has an ongoing Phase 1 maintenance trial with initial results (for the 19-week injectable dose) due in the third quarter, followed by results for the oral maintenance dose, set for early 2027.
Investor optimism over these trials grew in June.
Viking Therapeutics and VK3019
In addition, the company announced the initiation of a Phase 1 study of VK3019, an investigational dual amylin and calcitonin receptor agonist (DACRA). It represents a new class of drug with a different mechanism, and the trial is proof positive that Viking has more in its arsenal of weight-loss drugs than VK2735.
Where next for Viking Therapeutics
History is littered with pharmaceutical companies that rode a wave of optimism only to disappoint investors, and that may happen again with Viking. That said, VK2735 clearly has a lot of potential, not least as an efficacious dual-formulation strategy, and if Phase 1 maintenance trial results are positive, investors will be more willing to price that potential in. Something for investors to hope for in 2026.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly and Novo Nordisk. The Motley Fool recommends Viking Therapeutics. The Motley Fool has a disclosure policy.
