Investors appear disappointed with Viking Therapeutics Inc.’s (NASDAQ:VKTX) data from its Phase 2 trial of an obesity pill.
Participants receiving once-daily doses of oral VK2735 demonstrated a mean body weight reduction of up to 12.2% after 13 weeks from baseline.
Participants receiving VK2735 showed up to a 10.9% reduction in body weight compared to the placebo. No plateau observed for weight loss at 13 weeks.
All doses of VK2735 greater than 15 mg also demonstrated statistically significant differences relative to the placebo on the key secondary endpoint, assessing the proportion of subjects who demonstrated at least 5% and 10% weight loss.
Per the Phase 1 data released in March 2024, cohorts receiving VK2735 demonstrated dose-dependent reductions in mean body weight from baseline, ranging up to 5.3%.
Cohorts receiving VK2735 also demonstrated reductions in mean body weight relative to placebo, ranging up to 3.3%.
According to a Tuesday note from William Blair, investors are concerned about the tolerability profile and the higher rates of discontinuation. Both “appeared worse than the Phase I study,” which drove the sell-off, an analyst explained, adding that the downward stock reaction is “extreme and unwarranted.”
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William Blair's Andy Hsieh noted that while overall tolerability was weaker than in Phase I, the 30 mg dose — a likely maintenance option — showed a placebo-like safety profile. In contrast, the 60 mg group reported higher adverse events and discontinuations.
Given cost-of-goods constraints, Viking is unlikely to move forward with 90 mg or 120 mg doses, making the debate over their tolerability less relevant. Hsieh added that tolerability could improve in pivotal studies if the titration period is extended to four weeks, rather than the two weeks used in VENTURE-Oral.
William Blair says, “Viking's obesity franchise offers a unique set of attractive qualities that will be viewed favorably through the lens of big pharma from an M&A perspective.”
Previously, William Blair named Viking as the top pick for 2025, and it reiterates an Outperform rating on Viking shares.
In a social media post, a biotech investor compared Viking’s VK2735 with Eli Lilly and Co’s (NYSE:LLY) subcutaneous tirzepatide, commonly known as Mounjaro and Zepbound.
The borderline feasible dose levels of VKTX oral are inferior to Tzp SubQ on WL at 13 weeks (both absolute and placebo adjusted), the investor said. “And keep in mind, even 30/60mg QD is still 14x and 28x more API for $VKTX than $LLY TZP uses. That’s still a TON of API, and a huge headwind for the company.”
The investor is
He wrote that the regimen looks weaker than SubQ TZP, and tolerability issues aren't helping $VKTX.
Price Action: VKTX stock is down 41.04% at $24.82 at the last check on Tuesday
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