Is There a Future for Viking Therapeutics?

Viking Therapeutics (VKTX) is progressing its GLP-1/GIP agonist VK2735, with the subcutaneous formulation in Phase 3 trials expecting results in 2027 after strong Phase 2 data. While the oral formulation's Phase 2 results initially caused a stock sell-off due to a 20% discontinuation rate, the company has launched a new Phase 1 study combining oral and subcutaneous VK2735, exploring the oral version as a maintenance dose, with results anticipated in 2026. This strategic development, coupled with management's explanation for the Phase 2 discontinuation rate, is contributing to the stock's recovery and positions VK2735 as a potential rival in the weight loss market.

Analysis

Viking Therapeutics (VKTX) is advancing its GLP-1/GIP agonist VK2735, with the subcutaneous formulation demonstrating excellent Phase 2 results and currently enrolling participants in Phase 3 trials, with data anticipated in 2027. This positions VK2735 as a potential competitor to established offerings from Novo Nordisk and Eli Lilly in the weight loss and diabetes market.

Initial investor sentiment was negatively impacted by a 20% discontinuation rate in the oral VK2735's Phase 2 trial, leading to a stock sell-off despite superb Phase 1 efficacy. However, management attributed this to an unusually high 13% discontinuation rate in the placebo group, suggesting a challenging participant cohort rather than inherent drug issues.

The company has since initiated a new Phase 1 study combining oral and subcutaneous VK2735, aiming to explore the oral formulation as a maintenance dose, with results expected in 2026. This strategic move, coupled with the stock's subsequent recovery and an overall moderately positive sentiment (VKTX sentiment 0.8), suggests renewed confidence in the oral formulation's commercial viability and the drug's overall pipeline.

Key Decisions for Investors

• Investors should closely monitor the upcoming Phase 1 results for the combined oral and subcutaneous VK2735 in 2026, as this represents a critical pathway for the oral formulation's commercialization
• Track the Phase 3 subcutaneous trial results expected in 2027, which will further solidify VK2735's competitive standing against industry leaders
• Consider the strategic implications of the oral formulation as a maintenance dose, potentially expanding VK2735's market opportunity and mitigating previous discontinuation concerns