Keep an eye on Viking Therapeutics (VKTX).
Oversold at $33.84, the stock could come back strong with the company nearing Phase 3 trials for its injectable VK2735 for weight loss. It’s also expected to start Phase 2 trials for its oral formulation, with data expected in the second half of 2025.
What’s encouraging about VK2735 is that trial results show it’s outperforming other products already on the market.
For example, as noted by Seeking Alpha, “Semaglutide (Wegovy) only showed an 8% loss after 20 weeks, while tirzepatide (Zepbound) took significantly longer to reach a larger weight loss. According to a new study, the weight losses from these GLP-1s on the market was far lower than the Viking Therapeutics drug candidate.”
With exemplary results like that, so far, Viking Therapeutics could have a potential blockbuster hit on its hands with eventual approval from the US FDA.
In addition, the company reported that the injectable form of its VK2735 treatment helped patients lose up to 13.1% of their weight after 13 weeks in Phase 2 trials.
“The drug at a 15 mg dose showed up to 13.1% placebo-adjusted mean weight loss (14.7% from baseline) observed after only 13 weeks of treatment. After just 13 weeks, VK2735 showed competitive results against weight loss agents tested for longer periods,” added Seeking Alpha.
The company also said the oral form of VK2735 helped lead to weight loss of about 3.3% of body weight after 28 days in Phase 1 trials. With that result, the company now has plans to initiate its Phase 2 oral drug trial later this year.
We also have to consider the obesity market opportunity is substantial.
As noted by Goldman Sachs, the global obesity treatment market could grow to $130 billion by 2030. Even Morgan Stanley expects the global obesity drug treatment market to reach $105 billion by 2030 from $77 billion. At the high end, $144 billion.
Plus, there may be no shortage of demand.
That’s because, according to the World Health Organization, obesity has more than doubled since 1990. Adolescent obesity has quadrupled. In addition, about 390 million children and adolescents aged five to 19 years were overweight in 2022, including 160 million who were living with obesity.