Here's How VKTX's Obesity Drug Is Moving Quickly Through Phase III

Core Insights - Viking Therapeutics (VKTX) is advancing its late-stage obesity candidate VK2735, a dual GLP-1 and GIP receptor agonist, through multiple clinical studies for obesity treatment [1][2] Group 1: Clinical Development - VKTX is conducting two late-stage studies, VANQUISH-1 and VANQUISH-2, evaluating the SC version of VK2735 over a 78-week treatment period [2] - Enrollment in the VANQUISH-1 study has been completed with approximately 4,650 patients, exceeding the target of 4,500 patients, while nearly 1,100 patients are expected to be enrolled in VANQUISH-2 by the end of this quarter [3][11] Group 2: Market Dynamics - The rapid enrollment in VKTX's studies indicates strong demand for VK2735, reflecting high patient and physician enthusiasm, which could lead to significant commercial potential if the drug proves effective [4] - The obesity market in the U.S. is projected to reach $100 billion by 2030, with Eli Lilly and Novo Nordisk already generating substantial revenue from their obesity drugs [5] Group 3: Competitive Landscape - Novo Nordisk has received FDA approval for the oral version of Wegovy, enhancing patient adherence due to its convenience, while Eli Lilly is pursuing approval for its oral candidate, orforglipron [6][7] - Both companies are investing in next-generation obesity therapies, with Eli Lilly developing retatrutide and Novo Nordisk advancing amycretin, indicating a competitive landscape that is evolving rapidly [8][9] Group 4: Financial Performance - VKTX shares have underperformed the industry over the past year, trading at a premium with a price-to-book value (P/B) ratio of 5.58 compared to the industry average of 3.61 [12][14] - Estimates for VKTX's loss per share for 2025 and 2026 have widened recently, indicating potential challenges ahead [16]