Core Viewpoint - Viking Therapeutics has experienced significant stock volatility, with shares down nearly 60% since October of last year and 68% from early 2024 highs, despite a promising drug pipeline [1][2][3] Company Overview - Viking Therapeutics is a pre-revenue biopharma company with a market cap of $3.5 billion, focusing on developing treatments for rare metabolic and endocrine disorders [3][4] - The company is currently testing four different drugs across five clinical trials, with its lead candidate VK2735, an injectable anti-obesity drug, in phase 3 testing [4][5] Market Dynamics - The stock's volatility is attributed to market reactions to the drug's development progress, with investors often overreacting to news, leading to sharp price fluctuations [7][8] - Historical patterns in biopharma stocks suggest that significant price drops can precede a recovery, especially when the underlying drug shows potential [2][14] Competitive Landscape - Viking's VK2735 competes with established obesity drugs from Novo Nordisk and Eli Lilly, but there is potential for market share due to consumer willingness to try alternatives [15][16] - The global weight-loss drug market is projected to grow from $15 billion to $150 billion by 2035, indicating substantial growth opportunities for Viking Therapeutics [16] Future Outlook - The stock is expected to rally within a two-year timeframe as meaningful updates on VK2735's phase 3 testing are anticipated [17] - Concerns regarding the cost of manufacturing VK2735 in both injectable and oral forms may be overstated, given the projected demand in the market [18]