ZACKS·2025-09-25 14:16Core Insights - Viking Therapeutics (VKTX) is making significant progress in obesity drug development with its investigational drug VK2735, a dual GLP-1 and GIP receptor agonist [1] - Pfizer's acquisition of Metsera for $4.9 billion intensifies competition in the obesity market, adding four new clinical-stage programs to Pfizer's pipeline [2] - The recent mixed results from VKTX's mid-stage study raise concerns about the safety and tolerability of VK2735, particularly regarding higher dropout rates [4] Company Developments - VKTX is advancing VK2735 in both oral and subcutaneous forms for obesity treatment, with a focus now shifting to the subcutaneous version following mixed trial results for the oral formulation [5][9] - The company aims to compete with established players like Eli Lilly and Novo Nordisk, which dominate the obesity market with their injectable drugs [5] - Despite challenges, VKTX has achieved its primary and secondary endpoints in clinical studies, indicating potential for market share in the growing obesity sector [6] Industry Landscape - The obesity market in the U.S. is projected to reach $100 billion by 2030, with major players like Eli Lilly and Novo Nordisk already generating significant revenue from obesity drugs [7] - Amgen, AbbVie, and Merck are also entering the obesity space, with Amgen initiating phase III studies for its investigational drug MariTide [8][10] - The competitive landscape is becoming increasingly crowded, with multiple companies investing in next-generation obesity treatments [7][8] Financial Performance - VKTX shares have underperformed the industry year to date, trading at a premium with a price-to-book value ratio of 3.76 compared to the industry average of 3.22 [11][13] - Estimates for VKTX's loss per share for 2025 and 2026 have widened recently, indicating potential financial challenges ahead [14]