Viking Therapeutics has signed a long-term manufacturing deal worth $150 million with CordenPharma to secure a steady supply of its investigational obesity medication VK2735. The deal will set up an annual capacity of over 1 billion pills, 100 million autoinjectors, and 100 million vial and syringe products.
Analysts from William Blair have hailed the move as a smart strategy to ensure a stable supply chain, mitigating future risk for Viking’s stock. While some may view this deal as disappointing for potential takeout opportunities, the analysts believe it removes one major uncertainty for investors.
Under the pre-payment plan, Viking will make $150 million in payments over three years, which will be applied to future orders. CordenPharma will provide dedicated capacity to manufacture “multiple metric tons” of VK2735 annually, including both injectable and oral formulations being tested in clinical trials.
The deal is seen as a positive move for the biotech, which has gained prominence as a leading company tackling obesity alongside market leaders Novo Nordisk and Eli Lilly. Viking’s shares declined 10% following the announcement but the analysts predict significant revenue potential, estimated at $39 billion annually.
The companies have collaborated before, and the deal includes kick-starting a Phase III test of VK2735 in the second quarter of 2025. In earlier trials, the pill version achieved an impressive 8.2% weight loss after just 28 days.
Source: https://www.biospace.com/business/viking-secures-1b-supply-of-obesity-pill-candidate-with-150m-prepayment-deal