Eli Lilly (LLY) and Novo Nordisk (NVO) continue to dominate the weight-loss drug market, bolstered by recent product launches like Novo’s oral Wegovy and Eli Lilly’s newly approved Foundayo. These advancements cater to patient preferences for oral medications over injections, which can hinder treatment adherence due to storage and administration challenges. However, increasing competition from Viking Therapeutics (VKTX) could disrupt their stronghold.
Viking’s oral weight-loss candidate, VK2735, has shown promising results, achieving a mean weight loss of up to 12.2% in a 13-week phase 2 study. Yet, the drug’s tolerability issues, particularly gastrointestinal side effects, raise concerns. As Viking prepares for pivotal phase 3 trials, its ability to balance efficacy and safety will be critical for its market entry.
For investors, Viking Therapeutics presents a high-risk, high-reward opportunity. While the stock is unprofitable and faces intense competition, successful trial outcomes could lead to significant upside, making it a speculative buy for those willing to navigate the volatility.
Source: fool.com