Viking Therapeutics begins phase 2 trial for obesity drug

SAN DIEGO - Viking Therapeutics, Inc. (NASDAQ: NASDAQ:VKTX), whose stock has delivered an impressive 114% return over the past year, has launched a Phase 2 clinical trial for VK2735, an oral medication aimed at treating obesity and related metabolic disorders. According to InvestingPro data, the company, now valued at $4.64 billion, has attracted significant investor attention with analyst price targets ranging from $74 to $164. The study, named VENTURE-Oral Dosing Trial, is a 13-week, randomized, double-blind, placebo-controlled multicenter trial designed to assess the safety, tolerability, pharmacokinetics, and efficacy in weight loss of VK2735.

Approximately 280 adults classified as obese or overweight with weight-related co-morbid conditions will be enrolled in the trial. Participants will be randomly assigned to one of six dosing arms or a placebo group. The primary goal of the study is to determine the percentage change in body weight from baseline after 13 weeks of treatment, with secondary and exploratory endpoints including additional safety and efficacy measures.

The initiation of this trial follows positive results from a 28-day Phase 1 study, where VK2735 showed dose-dependent reductions in body weight and a favorable safety profile. The company also reported that the majority of treatment emergent adverse events were mild or moderate. InvestingPro analysis reveals the company maintains a strong financial position with more cash than debt and a healthy current ratio of 36.47, providing ample resources for its clinical development programs.

Viking Therapeutics is concurrently developing a subcutaneous formulation of VK2735, which has successfully met its primary and secondary endpoints in a separate Phase 2 trial. The company plans to begin Phase 3 development of the subcutaneous version in the first half of 2025.

VK2735 is a dual agonist of the glucagon-like peptide 1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP) receptors. Activation of these receptors has been associated with decreased glucose levels, reduced appetite, lower body weight, and improved insulin sensitivity in patients with type 2 diabetes, obesity, or both.

This news is based on a press release statement from Viking Therapeutics. The company's focus is on developing novel therapies for metabolic and endocrine disorders, with several compounds currently under clinical trials. Viking's research aims to create treatments that significantly improve patient outcomes in these areas. With the next earnings report scheduled for February 5, 2025, investors seeking deeper insights can access comprehensive analysis and 11 additional ProTips through InvestingPro's detailed research reports, which provide expert analysis on this and 1,400+ other US stocks.

In other recent news, Viking Therapeutics experienced a surge in its shares following disappointing results from Novo Nordisk (NYSE:NVO)'s obesity drug trial, which benefited competitors in the sector. Meanwhile, Viking's shares fell after Merck (NS:PROR) inked a deal with Hansoh Pharma, introducing a potential competitor to Viking's metabolic disorder candidate, VK2735. Viking Therapeutics also received an Overweight rating from Piper Sandler, which highlighted the promising results of VK2735's Phase 2 study.

Furthermore, the company has reported positive results from its Phase 2b clinical trial of VK2809 for treating non-alcoholic steatohepatitis. B.Riley initiated coverage on Viking Therapeutics with a Buy rating and a price target of $109.00, showing confidence in VK2735's potential to significantly impact the treatment landscape for obesity, type 2 diabetes, and metabolic dysfunction-associated steatohepatitis.

Lastly, Viking Therapeutics' Q3 2024 financial results revealed a net loss of $24.9 million, with research and development expenses of $22.8 million. Despite this, the company's cash and equivalents remain strong at $930 million, supporting its future clinical trials. These recent developments underscore Viking Therapeutics' progress in the field of obesity and metabolic disorder medication development.

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