Viking stock falls after obesity pill data

Midstage data on Viking’s obesity pill dampens hopes as Lilly and Novo Nordisk extend their lead in a fast growing market.

Viking Therapeutics stock falls after midstage obesity pill data

Viking Therapeutics' stock slid to about 23.80 dollars from 42.09 dollars after releasing midstage data for VK2735, its once daily obesity pill. The market value dropped to roughly 2.69 billion dollars from over 4 billion. Viking said weight loss reached up to 12.2 percent at about three months, with no clear plateau reported, but the trial also showed around 28 percent of patients stopped treatment over 13 weeks, a sign of tolerability concerns.

Analysts compared Viking's results with Eli Lilly's oral weight loss drug forglipron. They noted Lilly achieved 12.4 percent weight loss at the highest dose over 72 weeks, or 11.2 percent when discontinuations are counted, in a phase three trial. The data suggest Viking faces a tough path to catch up with Lilly and Novo Nordisk in the growing market for oral obesity drugs, especially as Viking's data come from a shorter study and involve more dropouts. Viking said most discontinuations were due to gastrointestinal side effects, but noted most were mild to moderate and occurred early, with the most common issues being nausea and vomiting compared with placebo.

The results highlight a crowded race in a market where a few big players set the pace and patient experience can decide the winner. Viking will need longer and larger studies to prove durable weight loss and tolerability. The reminder is clear: in obesity drugs, the value is not only what works, but what patients can tolerate over time.

Highlights

Markets will watch Viking's next moves as the competitive landscape tightens.