Viking Therapeutics stock plummets 33% after disappointing mid-stage trial data for obesity candidate VK2735

Viking Therapeutics' stock plummeted by more than a third after mid-stage trial data for its oral obesity candidate VK2735 failed to impress Wall Street. The biotech's San Diego-based company's shares have shed significant value despite its potential as an attractive obesity play.

Viking Therapeutics' stock tumbled by more than 40% on Tuesday following the release of mid-stage trial data for its oral obesity candidate, VK2735. The biotech company's shares dropped to approximately $23.80 from Monday's close of $42.09, marking a significant decline in its market capitalization [1].

The trial results, which were released on August 19, 2025, indicated that while the weight loss achieved by VK2735 was comparable to other oral drugs, the side effects and discontinuation rates were higher than expected. This led to a substantial sell-off, as investors reassessed their expectations for the drug's potential market dominance [1].

Jared Holz, a Mizuho healthcare equity strategist, noted that the data "probably shutters hope for [Viking] to be a bigtime player in the oral obesity market over the near to medium term" [1]. The high rate of patient discontinuation due to gastrointestinal side effects, such as nausea and vomiting, further dampened investor confidence [1].

The trial results highlighted a significant discrepancy in side effect rates compared to competitors like Eli Lilly and Novo Nordisk. While Eli Lilly's oral drug, origlipron, achieved similar weight loss with a lower discontinuation rate, the high rate of discontinuation for VK2735, at around 28% over 13 weeks, raised concerns about the drug's tolerability [1].

Despite the setback, Viking Therapeutics has previously shown promising results with VK2735. In a Phase 2 trial, the drug demonstrated up to 12.2% mean weight loss compared to a 1.3% loss in the placebo group over 13 weeks [2]. The trial also indicated potential for long-term weight maintenance with lower doses, suggesting a unique maintenance strategy in obesity treatment [2].

The company has scheduled a conference call for August 19, 2025, at 8:00 a.m. ET to discuss the trial results further. Investors will be closely watching for additional insights into the drug's potential and the company's strategic response to the trial data [3].

References:
[1] https://www.cnbc.com/2025/08/19/viking-therapeutics-obesity-pill-data.html
[2] https://www.stocktitan.net/news/VKTX/viking-therapeutics-announces-positive-top-line-results-from-phase-2-gsafogiorg9a.html
[3] https://finance.yahoo.com/news/viking-therapeutics-announces-positive-top-110500671.html