Viking Therapeutics Shares Plunge 36% After Mixed Weight-Loss Drug Trial

Viking Therapeutics' stock plunged over 35% following the release of mid-stage clinical trial results for its oral weight-loss drug VK2735, which showed up to 12.2% mean body weight reduction after 13 weeks. Despite demonstrating statistically significant efficacy comparable to competitors like Eli Lilly's Orforglipron, the trial experienced high dropout rates—28% for VK2735 versus 18% for placebo—primarily due to gastrointestinal side effects, raising concerns about the drug's tolerability. Analysts noted the safety profile was less clean than earlier studies but considered the efficacy strong with manageable side effects, while also highlighting that elevated discontinuation rates appear to be an industry-wide challenge. The negative market reaction underscores investor skepticism despite Viking meeting key safety and efficacy endpoints, with some brokerage firms maintaining an 'Outperform' rating and projecting significant upside potential. The trial’s findings emphasize the competitive and volatile nature of the oral weight-loss drug market, where tolerability remains a critical hurdle for new entrants. Viking is developing VK2735 in both oral and subcutaneous forms to treat obesity and metabolic disorders, aiming to provide alternatives to existing injectable treatments.