Viking Therapeutics Phase 2 Obesity Drug Shows 12% Weight Loss, Stock Drops Amid High Discontinuation

Viking Therapeutics announced Phase 2 trial results for its oral obesity drug candidate VK2735, showing up to 12.2% weight loss after 13 weeks, with no plateau in weight reduction observed, indicating potential for further loss in longer trials. The drug demonstrated statistically significant efficacy compared to placebo, with up to 97% of patients achieving at least 5% weight loss and up to 80% achieving at least 10%. However, the trial revealed high discontinuation rates of 28% overall and 38% at the highest dose, primarily due to gastrointestinal side effects such as nausea and vomiting, raising concerns about the drug's tolerability. This has tempered investor enthusiasm, leading to a significant drop in Viking's stock price despite the positive efficacy data. VK2735 is positioned in a competitive market alongside oral and injectable weight-loss treatments from Novo Nordisk and Eli Lilly, whose recent trial results have also disappointed investors. Analysts see potential for Viking to expand treatment options beyond injections if tolerability issues can be managed.