Viking Therapeutics' weight-loss drug faces setback in phase 2 trial

Viking Therapeutics has faced a setback in its phase 2 trial of the oral drug VK2735. While the treatment showed strong efficacy, a high rate of patient dropouts due to side effects has raised concerns. Investors reacted by driving down the company's stock price after reviewing the safety data.

The results come as part of a broader trend in weight-loss drug development, where tolerability remains a key challenge.

The phase 2 trial for VK2735 revealed that 20% of participants stopped treatment because of adverse events. This discontinuation rate was notably higher than those reported in phase 3 trials of similar drugs by competitors like Eli Lilly and Novo Nordisk.

Despite the safety concerns, Viking Therapeutics has seen remarkable stock growth over the past four years. Shares climbed from $2.18 USD in May 2022 to $38.29 USD by March 2026, reflecting investor optimism about the drug's potential. However, the latest trial results have tempered some of that enthusiasm.

Industry analysts suggest that a larger pharmaceutical company could step in to acquire or partner with Viking Therapeutics. Such a deal might focus on refining VK2735 into an oral formulation or positioning it as a maintenance therapy. The drug's efficacy data still holds promise, leaving room for future development if tolerability issues can be addressed.

Even with the recent downturn, some market watchers believe Viking's stock could remain an attractive option. Potential catalysts, such as further trial adjustments or partnerships, might revive investor confidence in the long term.

The phase 2 trial's mixed results have created uncertainty for Viking Therapeutics. The company now faces the challenge of improving VK2735's safety profile while maintaining its efficacy. How it addresses these issues could determine whether the drug progresses to later-stage trials or attracts interest from bigger players in the pharmaceutical industry.