Viking Therapeutics' weight loss drug showed up to 15% body weight reduction in a 13-week mid-stage trial, surpassing similar drugs from Eli Lilly and Novo Nordisk. However, further validation is needed in Phase 3 trials. This success led to a significant increase in Viking's market value and speculation about potential acquisition.

The following article originally appeared in BioPharma Dive.

Viking’s drug, an injectable therapy called VK2735, activates two insulin-stimulating hormones known as GLP-1 and GIP. The drug’s mechanism is similar to Lilly’s tirzepatide, which is approved for obesity and diabetes under different brand names. Tirzepatide is a big reason why the pharma giant has become one of the world’s most valuable companies, with a market capitalization above $700 billion.

Viking’s value is now climbing as well, as study results show its drug may be competitive with Lilly and Novo’s fast-selling medicines in a market some estimate will be worth as much as $90 billion annually by 2030.

Last year, Viking reported data from a Phase 1 trial of VK2735 that tested safety and evaluated which dose to use in further testing. At that point, participants who received the highest tested dose lost about 7.8% of their body weight over four weeks.

Data from the Phase 2 trial, called Venture, provide a broader look at the drug’s potential. The study enrolled 176 people classified as obese or overweight who had at least one weight-related health condition. They were randomized to receive either a placebo or one of four doses of VK2735 ranging from 2.5 to 15 milligrams a week.

From the study’s start, participants who received the lowest dose lost an average of 9.1% of their body weight, or about 7.4% more than those who received a placebo. The weight-loss effects were greater with each higher dose tested, and the results were statistically significant, the company said.

At all dose levels, study investigators saw a meaningful difference in the number of people losing at least 10% of their body weight when compared to a placebo. About 88% of those given the highest dose reached that threshold, for instance.

Side effects were more frequent at higher dose levels, too. One-fifth of the 35 participants on the highest drug dose quit the study early, Viking reported. Nausea affected 63% of the people taking that dose, and vomiting 29%, although both are common side effects of drugs like VK2735.

Nonetheless, the data exceeded the expectations of investors, who had forecast about 8% reductions in body weight, wrote Leerink Partners analyst Thomas Smith in a note to clients. William Blair analyst Andy Hsieh added the result “reflects a best-in-class profile among approved and investigational agents with Phase 2 data.”

“We are shifting our stance to believe VK2735 has the potential to exhibit a potentially better efficacy profile relative to Zepbound,” Hsieh wrote.

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