Viking Therapeutics recently experienced a notable 28% increase in its stock price after announcing plans to speed up the development of its experimental weight loss injection, VK2735, moving it to a late-stage trial sooner than initially expected. This strategic move positions the San Diego-based biotech company to enter the fast-growing market for GLP-1-based treatments, which analysts predict could reach $150 billion by the end of the decade. Viking aims to challenge established companies like Novo Nordisk and Eli Lilly, whose GLP-1 drugs for weight loss and diabetes have seen strong demand over the past two years. The news caused a market reaction, with Eli Lilly and Novo Nordisk’s shares dropping by more than 4% and 3%, respectively.
The decision to advance VK2735 directly to a phase three trial was influenced by positive feedback from the Food and Drug Administration (FDA), prompting Viking to skip the initially planned mid-stage trial. This change is expected to shorten the drug’s development timeline by about a year, with analysts now anticipating a market launch by 2029. During an earnings call, CEO Brian Lian mentioned that the company plans to meet with the FDA in the fourth quarter to finalize the trial’s design and timeline. Additionally, Viking is considering testing VK2735 as a monthly injection in future studies, potentially offering a more convenient option compared to the weekly treatments currently available from competitors.
VK2735 works by targeting both GLP-1 and GIP hormones to promote weight loss, using a mechanism similar to Eli Lilly’s Zepbound and Mounjaro. Results from the phase two trial were promising, showing that patients lost up to 14.7% of their body weight, or 13.1% more than those who received a placebo, over a 13-week period. Viking is also developing an oral version of VK2735, which showed a 3.3% weight loss compared to a placebo in early-stage trials. These developments highlight Viking’s potential as a new competitor in the GLP-1 treatment market, with the company’s innovative strategies and accelerated trial timeline marking a significant step forward in its growth.
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