Viking Therapeutics: Phase 3 Oral Study Falls Short, Competitor Acquisition Underway, Downgrade to Follow.

Viking Therapeutics' oral study for VK2735, an incretin for weight loss and diabetes, has disappointed, leading to a rating downgrade. The company is underway with phase 3 work, but results may take time. A competitor's buyout has also impacted the company's performance.

Viking Therapeutics (VKTX) faced a setback with its oral study for VK2735, an incretin for weight loss and diabetes, which has led to a downgrade in the company's stock rating. The results of the VENTURE-Oral study, released on August 19, 2025, showed that while VK2735 achieved clinically significant weight loss, the discontinuation rate was high, with 38% of patients discontinuing treatment early Viking Therapeutics: Oral Study Disappoints, Competitor Gets Bought Out (Rating Downgrade)^[2].

The study, which aimed to produce up to 12.9% weight loss with a 120 mg dose, saw 15 out of 40 patients stop treatment early. This high discontinuation rate raised concerns about the drug's safety profile and its potential as a viable competitor in the market Viking Therapeutics: Oral Study Disappoints, Competitor Gets Bought Out (Rating Downgrade)^[2].

Viking Therapeutics has responded to these concerns, emphasizing that most side effects were mild or moderate and that VK2735 was well-tolerated overall. However, the market's initial reaction suggests that investors are not entirely reassured Viking Therapeutics (VKTX): Revisiting Valuation After Safety Concerns From Oral Obesity Drug Trial News^[1].

Despite this setback, the company is moving forward with phase 3 trials for VK2735. The VANQUISH trials, which are underway, aim to enroll over 5,000 patients between them and will test the drug's efficacy and safety over 78 weeks. The primary completion dates for both trials are estimated to be July 2027 Viking Therapeutics: Oral Study Disappoints, Competitor Gets Bought Out (Rating Downgrade)^[2].

Additionally, the acquisition of competitor Metsera (MTSR) by Pfizer (PFE) for $4.9 billion upfront, with up to $22.50 per share in contingent value rights, has also impacted Viking Therapeutics' performance. The buyout highlights the potential value of a drug that can be administered infrequently to produce or maintain weight loss, which could be a catalyst for VKTX's stock Viking Therapeutics: Oral Study Disappoints, Competitor Gets Bought Out (Rating Downgrade)^[2].

Investors are advised to closely monitor the progress of VK2735's phase 3 trials and the company's ongoing efforts to evaluate monthly dosing as potential catalysts for the stock. The results of these trials could significantly impact the company's valuation and future prospects.