Down 44%, Should You Buy the Dip on Viking Therapeutics?

Core Insights - Viking Therapeutics has made significant progress with its investigational weight loss drug, which is part of a market projected to reach $100 billion by the end of the decade [1] - The company's stock experienced a surge of over 100% following positive clinical trial results, but has since declined by 44% over the past year [2][3] - Viking is developing VK2735, a dual GIP/GLP-1 receptor agonist, with promising results in both injectable and oral forms [7][8] Company Developments - Viking's weight loss program includes an injectable version of VK2735 currently in phase 3 trials and an oral version in phase 2 trials [7] - In the phase 2 study, participants using the injectable form achieved an average weight loss of 14.7% after 13 weeks, while the oral version showed an average weight loss of 12.2% [8] Industry Context - The current market leaders in weight loss treatments are Novo Nordisk and Eli Lilly, whose GLP-1 drugs have transitioned from diabetes treatment to effective weight management solutions [6] - Viking's candidates are positioned to compete in a lucrative market, potentially challenging existing leaders or attracting acquisition interest from larger companies [2][3]