Eli Lilly vs. Viking Therapeutics Stock: Which Is the Best Growth Opportunity, According to Wall Street?

Industry Overview - The weight loss drug market is currently valued at approximately $28 billion and is projected to grow to $95 billion by 2030 according to Goldman Sachs Research [1] - Weight loss drugs are significantly boosting revenues for market leaders like Eli Lilly and Novo Nordisk [1] Eli Lilly - Eli Lilly has commercialized tirzepatide for type 2 diabetes and weight loss under the names Mounjaro and Zepbound, respectively, with both products generating blockbuster revenue [3] - Demand for these drugs has been so high that they were on the FDA's drug shortage list for much of the previous year [3] - Lilly has improved supply through investments in manufacturing and by offering Zepbound in single-dose vials, which are easier and cheaper to produce [4] - In the most recent quarter, Lilly's revenue increased by 38% to over $15 billion, with weight loss drugs accounting for more than half of this revenue [5] - Lilly is preparing to submit orforglipron, its oral obesity candidate, for regulatory review worldwide this year [5] Viking Therapeutics - Viking Therapeutics is developing a drug similar to Lilly's, targeting the same hormonal pathways to regulate blood sugar and reduce appetite [7] - The company is currently testing VK2735 in injectable form in a phase 3 trial and in pill form in a phase 2 trial, with positive results reported so far [8] - Investors are attracted to Viking for its weight loss portfolio and the potential for a takeover or partnership, as many companies in the pharma and biotech sectors are interested in entering the weight loss market [9] - Viking is positioned to offer significant growth potential as it approaches the market with its candidates [10] Wall Street Insights - Wall Street's average price forecast for Eli Lilly is $891, indicating a potential 10% increase from the current price, while Viking's forecast is over $92, suggesting a 179% gain [11] - Both companies have more buy recommendations than sell recommendations from analysts [11] - While Viking shows higher growth potential, cautious investors may prefer Lilly due to its established market presence and product offerings [12]