Core Viewpoint - Eli Lilly and Co. has experienced significant stock volatility due to developments in its weight-loss drug portfolio, with recent positive trial results boosting investor confidence [1][5]. Company Summary - Eli Lilly's stock reached highs near $960 in August 2024 but subsequently dropped over 20% due to disappointing drug trial results and concerns regarding insurance coverage and competition [2]. - The company's oral obesity drug previously failed to meet expectations compared to rival products, prompting investors to reassess growth prospects [3]. - Increased competition in the obesity drug market has led to price wars, creating further uncertainty for Eli Lilly [4]. Market Reaction - Following the announcement of positive Phase 3 trial results, Eli Lilly's stock surged more than 4%, indicating renewed investor confidence in the drug's regulatory and commercial potential [5]. - At the time of publication, Eli Lilly shares were reported at $724.66, reflecting a 4.22% increase [5].

Core Viewpoint - Viking Therapeutics is advancing in the weight-loss drug market with the initiation of its Phase 2 VENTURE-Oral trial for VK2735, aiming to leverage Eli Lilly's recent challenges and broaden treatment options beyond injections [1][5]. Group 1: Trial Details - The VENTURE-Oral trial commenced in January 2025 and will evaluate the safety, tolerability, pharmacokinetics, and weight-loss efficacy of a once-daily oral dose over a 13-week period [1][3]. - The primary endpoint of the study is the percent change in body weight from baseline after 13 weeks, with secondary endpoints assessing additional safety and efficacy measures [3]. Group 2: Market Context - Eli Lilly's recent Phase 3 ATTAIN-1 trial for orforglipron showed underwhelming weight loss results, creating an opportunity for smaller competitors like Viking to fill the clinical gap [5]. - Analysts expect Viking to demonstrate the potential of VK2735's oral formulation as a competitive option in weight maintenance, with recommendations to buy shares before the Phase II readout [6]. Group 3: Expected Outcomes - Viking anticipates releasing trial results in the second half of 2025, with projections indicating a placebo-adjusted weight loss of slightly under 7% for the highest doses, based on Phase I results [4]. - Previous studies showed that patients receiving VK2735 achieved statistically significant mean body weight reductions of up to 14.7% from baseline and up to 13.1% relative to placebo [7].