Viking Therapeutics Ready to Make Billions as a Strong Contender in the GLP-1 Weight Loss Space

Viking Therapeutics has developed a promising GLP-1 drug and is well-positioned to capture a substantial share of the expanding weight loss market. GLP-1 weight-loss drugs have taken the pharmaceutical industry by storm, with Novo Nordisk’s Wegovy and Eli Lilly’s Mounjaro leading the charge. As the weight-loss drug landscape rapidly evolves, other pharmaceutical companies are making moves to enter this competitive market. However, these emerging contenders face the challenge bridging a huge gap in order to compete with industry giants like Novo Nordisk (NVO) and Eli Lilly (LLY).

Viking Therapeutics’ Shares Surge 250%, Targeting the $150 Billion Weight-Loss TAM

In the past year, Lilly and Novo shares have soared 72% and 46%, respectively. Novo leads Europe in market cap, while Lilly ranks eighth in the US with a $900 billion valuation. Promising research has boosted both companies’ shares, revealing potential beyond weight loss and diabetes treatments. Consequently, investors are eagerly searching for the next major breakthrough in the weight-loss sector.

In recent discussions, a significant interest in Viking Therapeutics’ advancements in GLP-1 treatments has been shown. Despite being a small biotech firm, Viking (VKTX) is making strides in the massive TAM (total addressable market). The market of weight-loss therapeutics is valued at around $150 billion. Given the large playing field, Viking’s shares have surged nearly 250% this year. Despite this growth, its $7 billion market cap remains small compared to its competitors, although this does provide an alternative avenue for growth. The company is working on two promising products: a monthly injection and a highly anticipated pill, which early tests suggest is well-tolerated. VKTX’s drug shows results more quickly and is more effective than some of the leading drugs on the market. Given this, Viking could become an attractive acquisition target for major pharmaceutical companies looking to enter the weight loss market.

Phase 1 MAD Clinical Trial of VK2735: Positive Results for Oral Dual GLP-1/GIP Receptor Agonist 

Viking Therapeutics focuses on developing treatments for metabolic and endocrine disorders, including liver diseases like steatohepatitis (NASH), obesity, and diabetes. The company leverages its expertise in receptor signaling pathways to improve health outcomes over time.

In March, Viking Therapeutics  announced positive results from its Phase 1 multiple ascending dose (MAD) clinical trial of VK2735. This oral tablet acts as a dual agonist of the GLP-1 and GIP receptors and targets metabolic disorders, including obesity. The Phase 1 results showed promising outcomes, leading the company to plan a Phase 2 trial for VK2735 later this year.

The 28-day MAD study of VK2735 showed encouraging clinical activity. The trial revealed dose-dependent reductions in mean body weight, with the most significant reduction reaching 5.3%. VK2735-treated participants experienced weight loss of up to 3.3% compared to the placebo. Notably, 57% of VK2735 users lost at least 5% of their body weight, while no one in the placebo group did. The company believes that extending the treatment duration could further enhance weight loss, highlighting VK2735’s potential as an effective obesity treatment.

Given these promising results, Viking Therapeutics plans to advance VK2735 directly to Phase III trials, skipping the expected Phase IIb study. This decision follows mid-stage results from the VENTURE study, which showed a 14.7% reduction in body weight after 13 weeks. With the possibility of monthly dosing, Viking aims to position VK2735 competitively in the GLP-1 market and challenge existing leaders like Wegovy and Zepbound.

The Obesity Epidemic: Rising Demand for GLP-1 Drugs in the Fight Against Weight-Related Disease

America, alongside numerous other countries, faces a severe obesity crisis, worsened by factors like poor eating habits, lack of exercise, and environmental influences. The easy availability of high-calorie foods and sugary drinks contribute to the problem. Additionally, societal norms around portion sizes and eating habits exacerbate the situation.

Heart disease, primarily caused by unhealthy diets and inactivity, is the leading cause of death in the United States. In 2021, it was responsible for 13% of all deaths, affecting both men and women equally, according to the World Health Organization (WHO).

GLP-1 drugs, which mimic a hormone that regulates blood sugar and appetite, are an option for addressing obesity and related conditions like diabetes. These drugs enhance insulin production and aid in digestion. The great demand for these drugs have generated significant revenue.

Author

Bernice Lottering