Why Viking Therapeutics Stock Plummeted by 24% in December

Market Dynamics - Viking Therapeutics' share price declined by 24% in December 2024 due to intensified competition in the pharmaceutical market [1] - Merck entered into a licensing deal with Hansoh Pharma for an investigational weight-loss drug HS-10535, posing a threat to Viking's VK2735 program [3] - The weight-loss drug market is highly lucrative with only two GLP-1 drugs approved in the US, indicating significant growth potential [6] Competitive Landscape - Merck secured exclusive global licensing rights to HS-10535, committing $112 million upfront and up to $1.9 billion in milestone payments and royalties [5] - Viking's VK2735, an oral obesity drug, is relatively advanced in development and has shown promising results in clinical trials [3][8] - VK2735 has a competitive advantage over injectable treatments like Novo Nordisk's Wegovy and Eli Lilly's Zepbound [4] Development Progress - HS-10535 is still in development and its efficacy remains uncertain, while VK2735 is closer to commercialization [7][8] - Viking's VK2735 is positioned as a potential go-to treatment due to its oral administration format [8]