Where Does VKTX Stock Stand After the Obesity Pill Setback?

Core Viewpoint - Viking Therapeutics (VKTX) is a promising biotech company developing VK2735, a dual GLP-1 and GIP receptor agonist for obesity treatment, despite recent setbacks in clinical trials [1][4]. Company Summary - VKTX's stock faced a significant decline after reporting mixed results from a mid-stage study of VK2735, where patients on the highest dose lost up to 12.2% of body weight, but dropout rates due to adverse events were concerning at 28% for VK2735 compared to 18% for placebo [2][3]. - The company aims to address tolerability and safety concerns by gradually increasing doses for patients [3]. - Despite the challenges, VKTX achieved its primary and secondary endpoints in the study, indicating potential for future development [4]. Industry Summary - The obesity market in the U.S. is projected to reach $100 billion by 2030, with major players like Eli Lilly and Novo Nordisk leading the market with their injectable drugs [5]. - Eli Lilly and Novo Nordisk are actively working on oral weight-loss pills, with Novo's oral Wegovy under FDA review and Lilly planning to submit a regulatory filing for its oral drug orforglipron by the end of 2023 [6][7]. - Amgen is also advancing in the obesity space with its investigational drug MariTide, which is in phase III studies [8]. Valuation and Estimates - VKTX shares are trading at a premium valuation, with a price-to-book ratio of 3.66 compared to the industry average of 3.19 [11]. - Loss per share estimates for VKTX have widened significantly, with 2025 estimates increasing from $1.87 to $2.48 and 2026 estimates rising from $2.54 to $3.15 [13].