Viking Therapeutics Shares Plunge After Oral Obesity Drug Trial Shows High Dropout Rates

Viking Therapeutics saw its shares plummet by over 40% following the release of Phase 2 trial results for its oral weight-loss drug VK2735, which, despite achieving up to 12.2% weight loss, was marred by a high 38% treatment discontinuation rate at the most effective 120mg dose due to gastrointestinal side effects. The drug's efficacy, while statistically significant, fell short of competitors like Novo Nordisk's oral Wegovy and Eli Lilly's orforglipron, both of which demonstrated stronger weight loss outcomes. Investors expressed concern that the tolerability issues might limit Viking's ability to proceed with the highest dose into Phase 3 trials, potentially impacting the drug's commercial viability. Viking's CEO defended the results by emphasizing that gastrointestinal adverse events typically occurred early and resolved with continued dosing, and highlighted the potential for progressive weight loss over longer treatment durations. Additionally, Viking is exploring the use of lower maintenance doses to sustain weight loss and reduce side effects, aiming to position VK2735 as a viable long-term obesity therapy. The trial's outcome underscores the ongoing challenges in developing oral GLP-1 based obesity treatments that can compete with established injectable therapies.