Viking Therapeutics stock rises as Truist reiterates Buy on weight loss data

Published 19/08/2025, 15:40
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Investing.com - Viking Therapeutics (NASDAQ:VKTX) received a reiterated Buy rating and $75.00 price target from Truist Securities following the release of Phase 2 VENTURE-Oral trial data. The company is competing in a market dominated by pharmaceutical giants like Eli Lilly (NYSE: NYSE:LLY), which has seen a remarkable 36.8% revenue growth over the last twelve months.

The trial demonstrated placebo-adjusted weight loss of 5.7%, 7.4%, 9.8%, and 10.9% for the 30mg, 60mg, 90mg, and 120mg doses of oral VK2735, respectively, at week 13. These results compare favorably to oral semaglutide 25mg, which showed approximately 4% placebo-adjusted weight loss at week 12. Want deeper insights into pharmaceutical companies? InvestingPro offers comprehensive analysis of 1,400+ stocks, including detailed financial health scores and exclusive Fair Value calculations.

Truist Securities noted that the 30mg dose of VK2735 achieved 5.7% placebo-adjusted weight loss at week 13, outperforming oral semaglutide 25mg’s approximately 4% at week 12, which may be significant from a cost of goods standpoint.

The Phase 2 trial employed a more aggressive titration regimen than in Phase 1, with the 15mg and 30mg cohorts starting immediately at their target doses without titration for the entire 13-week period, which may have contributed to higher gastrointestinal adverse events than reported in Phase 1.

Truist Securities suggested that a more gradual titration regimen in future studies might reduce gastrointestinal adverse events, and highlighted interest in the upcoming maintenance study starting in third-quarter 2025, which will include a subcutaneous to oral VK2735 transition cohort. The weight loss market continues to attract significant investment, with industry leader Eli Lilly maintaining strong profitability with an impressive 82.6% gross profit margin and robust cash flows to support ongoing research and development.

In other recent news, Eli Lilly has raised the price of its weight loss drug Mounjaro in the United Kingdom (TADAWUL:4280) by up to 170%, with the cost for a month’s supply of the highest doses increasing from £122 to £330. This development comes alongside a lawsuit filed by the Texas Attorney General, accusing Eli Lilly of allegedly bribing healthcare providers to prescribe its medications, specifically mentioning GLP-1 medications Mounjaro and Zepbound. Additionally, Eli Lilly’s stock price target was lowered by Cantor Fitzgerald to $825, maintaining an Overweight rating, due to concerns about the company’s oral weight loss drug candidate, orforglipron, which did not meet market expectations. Guggenheim also reduced its price target for Eli Lilly to $875, despite the company’s second-quarter 2025 earnings exceeding expectations and an upward revision of its full-year guidance.

Meanwhile, JPMorgan has reiterated an Overweight rating on Viking Therapeutic after the release of data from the phase 2a Venture Oral trial. The trial showed significant placebo-adjusted weight loss in the highest-dosing arms, which JPMorgan described as "very strong" compared to other oral treatments in development. These recent developments highlight ongoing shifts and challenges in the pharmaceutical sector, with a focus on weight loss treatments.

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