Viking Therapeutics' obesity drug shows durable weight-loss benefit, shares jump
VK2735 obesity drug maintained up to 97% of prior weight loss with less frequent dosing, lifting shares 40% as it advances injectable and oral options for a market projected to hit $100B by 2030
Viking Therapeutics said patients shifted to a less frequent dosing regimen of its experimental obesity treatment showed superior weight loss maintenance to those on placebo, in a study, sending its shares up 40% before the bell.
The company said on Tuesday that patients who switched to an every-other-week dosing of VK2735 maintained up to 97% of the weight they had lost during an initial 21-week treatment period, while those on a monthly dosing retained up to 90% of their prior weight loss over the following 12 weeks.
Oppenheimer analysts said, ahead of the data, that VK2735's competitive advantage may lie in its "long-term persistence, flexibility, convenience and continuity of care," rather than solely the extent of the initial weight loss.
The obesity market is dominated by treatments from pharma majors Novo Nordisk and Eli Lilly, which are locked in a battle for market share through effective and convenient treatments including injections and pills.
By developing both injectable and oral versions of VK2735, Viking is seeking to carve out a place for itself in the fast-growing sector by offering more flexible dosing options that could reduce treatment burden.
Analysts expect the obesity market to reach $100 billion in annual sales by 2030.
In a small study group that continued weekly treatment for 33 weeks, patients lost an average of 21.7% of their body weight, Viking said.
It said that it plans to study oral maintenance dosing in a future part of the trial.