Viking Therapeutics stock crashed Tuesday — losing more than a third of its value — on mixed results for its weight-loss pill.
Patients who took the daily pill for 13 weeks lost, on average, up to 12.2% of their body weight, translating to 26.6 pounds. That compared to a 1.3%, or 2.9-pound, loss for placebo recipients.
But a fifth of patients taking Viking's drug dropped out of the study due to side effects, compared to 13% of the placebo group. The most common side effects were gastrointestinal, which lines up with other drugs in the class. Viking, though, says 99% of the side effects were mild to moderate.
Viking Therapeutics stock plummeted 42.1%, closing at 24.36.
Shares of other obesity-tied drugmakers rose in response. Eli Lilly stock rose 0.7% to 703.21, while Novo Nordisk shares advanced 1.9% to 54.78. Shares of Structure Therapeutics closed down 5.8% at 18.80, wiping out earlier gains.
Oral Vs. Injections
Viking's VK2735 works by mimicking the GLP-1 and GIP hormones to curb hunger and improve blood sugar markers. It's most similar to Eli Lilly's weekly shot, Zepbound. Novo Nordisk also sells a weekly injection called Wegovy. Wegovy targets GLP-1, alone.
Chief Executive Brian Lian says there's a potential for steeper weight loss over time with VK2735.
"The progressive nature of the weight loss curves suggests the potential for further improvement with longer dosing periods," he said in a statement.
Viking Therapeutics is also working on an injectable version of the same drug. But Lian noted the benefits of testing both a weight-loss shot and a pill. This makes the transition to the maintenance phase of weight loss much easier on the patient, he said.
Novo Could Be First
Other drugmakers are trying to break into the oral weight-loss market. Pills are generally less complicated to develop because they don't also require a device, like a syringe, vial or pen. They also don't require refrigeration and it's easier to modulate the dosage to stave off side effects.
Novo Nordisk is closest with its pill, oral semaglutide. Semaglutide is the active ingredient behind Wegovy and diabetes drugs Ozempic and Rybelsus. The Food and Drug Administration will make an approval decision in the fourth quarter.
Lilly recently said patients who took its weight-loss pill for 72 weeks lost 11.5% more body weight than the placebo group. But shares dropped. That trailed the 12% to 13% placebo-adjusted weight loss recorded by Wegovy recipients in Novo's pivotal study.
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