Viking Therapeutics VKTX drops after Phase 2 data

Viking Therapeutics shares fell after Phase 2 data for VK2735 were released, signaling a cautious market despite meeting trial endpoints.

Viking Therapeutics stock slides after phase 2 VK2735 results

Viking Therapeutics (VKTX) reported Phase 2 results for VK2735, a dual GLP-1 and GIP receptor agonist aimed at obesity and metabolic disorders. The study met its primary and secondary endpoints, with patients showing meaningful weight loss compared with placebo. The reported mean weight loss reached up to 10.9%, and up to 80% of participants achieved more than 10% weight loss versus 5% on placebo. Discontinuations due to adverse events occurred in 20% of patients, compared with 13% for placebo.

Despite these positive signals, Viking Therapeutics faced a sharp fall in stock price in the premarket session, with shares down around 37% after the data release and trading activity well above the three-month average. Wall Street remains mixed on immediate upside: the current analyst consensus is Strong Buy based on a handful of rating updates, with an average price target suggesting substantial upside from current levels. The stock has posted modest gains year to date but remains significantly below its 12-month high, reflecting the market’s focus on safety, durability, and eventual regulatory milestones.

The result shows a familiar tension in biotech: strong early efficacy must be balanced against safety and durability. Meeting endpoints and delivering substantial weight loss is encouraging, but a higher discontinuation rate due to adverse events raises questions about the drug’s tolerability in longer use. The maintenance concept—transitioning patients from higher-dose injections to lower oral doses—appears to offer a promising path, yet investors will want to see longer-term data and real-world adherence. The mixed reaction also underscores how the market values clear, durable benefits and predictable safety profiles as much as the science itself. Viking’s next steps will hinge on longer exposure data, head-to-head comparisons in the crowded GLP-1/GIP space, and clarity on the oral formulation’s performance versus injections.

Highlights

The path forward will test how quickly science can translate into lasting outcomes for patients and investors alike.