U.S. stocks lower as investors rotate out of tech ahead of Jackson Hole
Investing.com -- Novo Nordisk and Eli Lilly (NYSE:LLY) shares edged higher Tuesday following results from Viking Therapeutics’ Phase 2 VENTURE-Oral Dosing trial for its oral obesity treatment.
Novo Nordisk (NYSE:NVO) rose 1.4% premarket, while Eli Lilly gained 1.2%. Viking Therapeutics (NASDAQ:VKTX) plunged over 30% in premarket trading.
The trial tested Viking’s oral tablet VK2735, a dual GLP-1 and GIP receptor agonist, and met its primary endpoint, with patients losing up to 12.2% of body weight after 13 weeks versus 1.3% for placebo.
However, a 28% treatment discontinuation rate among VK2735 recipients raised concerns, compared with 18% in the placebo group.
Viking said 99% of gastrointestinal-related adverse events were mild or moderate, and an exploratory maintenance dosing arm indicated weight loss could be maintained at lower doses.
Mizuho (NYSE:MFG) analyst Jared Holz said the data highlighted challenges relative to Eli Lilly’s offerings.
“Data look inferior to LLY on almost all metrics and the thing to consider here is that patients discontinued at such a high rate over 13-weeks vs. LLY in the mid 20% range — but over 72-weeks; a much longer trial, and therefore LLY looks far better head-to-head,” Holz wrote.
He added that Viking would likely need pipeline improvements or enhanced formulations to regain investor interest.
“A tough day for retail investors ahead – that have been pumping this thing like a 1991 Reebok Dee Brown," concluded Holz.
The results underscore the competitive pressure in the oral obesity market.