Viking Therapeutics (NASDAQ:VKTX) saw its stock drop by 37% recently after sharing results from its Phase 2 VENTURE trial for an oral obesity treatment. In contrast, Eli Lilly (NYSE:LLY) had a small gain of 1.5%, as analysts noted its strong position in the market.
The trial focused on VK2735, which is a dual GLP-1 and GIP receptor agonist. It achieved its main goal, showing that patients lost up to 12.2% of their body weight over 13 weeks, compared to just 1.3% for those on a placebo.
However, a significant concern arose from the high dropout rate. About 28% of patients using VK2735 discontinued treatment, compared to 18% for the placebo group. This raised red flags for investors.
Mizuho analyst Jared Holz pointed out that Viking’s data looked less impressive compared to Eli Lilly’s results. He stated, “The high dropout rate is troubling, especially since Eli Lilly’s trial showed lower rates over a longer period.” This could hamper Viking’s chances in the competitive obesity treatment market.
On a more optimistic note, JPMorgan analyst Hardik Parikh acknowledged the trial’s weight loss results. He highlighted that the top dosing levels showed good weight loss compared to others in development. He did caution, though, that the side effects were worse than expected compared to the initial phase.
Interestingly, Viking reported that most side effects, mainly gastrointestinal, were mild or moderate. However, there was a notable incidence of vomiting (20-35% in higher doses) compared to about 10% for those on the placebo.
To add context, obesity treatments are a hot topic right now. According to a recent report from the CDC, around 42% of adults in the U.S. struggle with obesity. The demand for effective treatments has surged, making the stakes higher for companies like Viking and Eli Lilly.
In summary, while Viking’s initial results showed promise, the challenges it faces—including high dropout rates and adverse side effects—may limit its role in the increasingly competitive obesity market. As analysts continue to evaluate the data, it remains to be seen how Viking will navigate this complex landscape.
For more on Viking Therapeutics, visit Investing.com.
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Viking Therapeutics, obesity treatment, Eli Lilly, placebo, weight loss, patients, competitive advantages
