Shares of Viking Therapeutics plummeted 43% on Tuesday after the biotech company released midstage trial data on its obesity pill, VK2735. The weight loss results, while comparable to other oral drugs, were overshadowed by concerns over side effects and discontinuation rates.
According to Jared Holz, a healthcare equity strategist at Mizuho, the data suggests Viking’s pill may not be a major player in the oral obesity market for the near-term. The high rate of patients who discontinued the treatment due to gastrointestinal side effects raises questions about its efficacy.
In contrast, Eli Lilly’s oral drug and Novo Nordisk’s Wegovy appear to have an edge in terms of safety and effectiveness. While both target GLP-1, a hormone that helps reduce food intake and appetite, the oral version of Wegovy has dietary restrictions.
The midstage trial data showed Viking’s pill helped patients lose up to 12.2% of their weight at three months. However, the side effects – particularly nausea and vomiting – were more prevalent than those experienced by patients taking Eli Lilly’s pill or Novo Nordisk’s oral version.
Viking’s stock price has dropped to around $23.80, with a market capitalization of over $2 billion. The results may be a blow to the company, which was once considered a hot M&A target in the booming obesity and diabetes market.
Source: https://www.cnbc.com/2025/08/19/viking-therapeutics-obesity-pill-data.html