Viking Therapeutics' VK2735: A Dual-Pronged Attack on the GLP-1 Market

The obesity treatment landscape is on the brink of upheaval. Viking Therapeutics (VKTX) is advancing its Phase 3 program for VK2735, a dual GLP-1/GIP receptor agonist, with a bold promise: faster weight loss than current market leaders, paired with flexible administration options. As the drug's subcutaneous and oral formulations enter pivotal trials, investors are watching closely to see if VK2735 can carve out a dominant position in a market projected to reach $12 billion by 2030.

The GLP-1 Market: A Race for Speed and Convenience

The GLP-1 class has been dominated by Wegovy (Novo Nordisk) and Zepbound (Eli Lilly), which rely on weekly injections to deliver weight loss of ~10-15% over 6–12 months. However, these drugs face limitations: slow onset of action, patient inconvenience due to weekly dosing, and a lack of oral alternatives. Enter VK2735, which boasts 14.7% weight loss in just 13 weeks in Phase 2 trials—a pace that outpaces competitors.

What's more, VK2735's 171-day half-life hints at the potential for a monthly injection formulation, a critical advantage over weekly regimens. This convenience could drive adherence and market share, especially as patients increasingly demand flexibility.

Phase 3 Trial Design: Precision and Scale

The Phase 3 program, named VANQUISH, consists of two trials targeting 5,600 patients:
1. VANQUISH-1: 4,500 obese or overweight adults with weight-related comorbidities.
2. VANQUISH-2: 1,100 obese or overweight adults with type 2 diabetes.

Both trials use once-weekly subcutaneous injections of VK2735 (7.5 mg, 12.5 mg, or 17.5 mg) versus placebo. The primary endpoint is percent change in body weight after 78 weeks—a duration that will test VK2735's ability to sustain results. Secondary endpoints include the percentage of patients achieving ≥5%, ≥10%, ≥15%, and ≥20% weight loss, as well as glycemic control in the diabetes cohort.

The trial design mirrors the rigor of its competitors but with a critical twist: VK2735's speed of action. Phase 2 data showed statistically significant weight loss as early as Week 1, suggesting patients may see results far sooner than with existing therapies. This could be a major selling point for physicians and patients alike.

The Oral Option: Expanding Access

While the subcutaneous program takes center stage, the oral formulation is equally compelling. Phase 1 data demonstrated 8.2% weight loss after 28 days of once-daily dosing, with 100% of treated subjects achieving ≥5% loss at higher doses. Phase 2 results, expected late this year, could validate the oral version as a maintenance therapy or alternative for patients averse to injections.

Combined, the dual delivery systems position VK2735 to capture a broader patient population than its competitors. Novo Nordisk's Wegovy and Lilly's Zepbound currently offer only injectable options, leaving the oral market largely untapped.

Safety: A Steep Hill, but Manageable

GLP-1 therapies are known for gastrointestinal side effects, and VK2735 is no exception. Phase 2 trials reported mild/moderate GI events (e.g., nausea, diarrhea), primarily in the first week of treatment. These trends align with competitors' profiles, and the transient nature of the symptoms suggests tolerability will not be a major barrier.

Crucially, there were no severe systemic adverse events in Phase 2, and the side effects were dose-dependent—meaning lower doses could balance efficacy and safety. This flexibility is critical for regulatory approval and real-world use.

The Financial Edge: A Strong Balance Sheet

Viking's cash position of $852 million as of Q1 2025 ensures it can fund both Phase 3 programs without dilution. The company also secured a manufacturing agreement with CordenPharma, guaranteeing supply chain stability for commercialization. This contrasts with smaller biotechs that often face late-stage funding hurdles, giving Viking a leg up in execution.

Competitor Comparison: Where VK2735 Stands

To assess VK2735's disruptive potential, let's compare its Phase 2 results to competitors:

Drug	Weight Loss (Placebo-Adj.)	Timeframe	Dosing Frequency
VK2735	13.1%	13 weeks	Weekly (Monthly potential)
Wegovy	12.4%	68 weeks	Weekly
Zepbound	12.4% (68 wk) / 20.1% (72 wk)	68-72 weeks	Weekly

VK2735's superior speed and monthly dosing potential could redefine the market. Even if Zepbound's 20.1% at 72 weeks remains unmatched, VK2735's ability to deliver half that result in a quarter of the time could make it the preferred first-line therapy for rapid weight loss.

Investment Considerations

1. Upside Catalysts:
2. Positive Phase 3 data (expected late 2026/early 2027).
3. Phase 2 oral results (late 2025), which could validate a second revenue stream.

4. Potential for a monthly injection formulation, enhancing adherence and pricing power.

5. Risks:

6. Regulatory hurdles (FDA may demand additional endpoints).
7. Competition from emerging therapies (e.g., Amylin agonists).

8. Manufacturing delays or cost overruns.

9. Valuation:
   If approved, analysts project peak sales for VK2735 at $3–5 billion, driven by its dual administration and speed. At current valuations (~$1.2 billion market cap), the stock offers significant upside if Phase 3 succeeds.

Final Take: A High-Reward, High-Risk Opportunity

Viking Therapeutics is betting big on VK2735's disruptive potential—and investors should too. The drug's speed, dual delivery options, and strong safety profile set it apart in a crowded market. While the Phase 3 trials are a critical hurdle, the data so far suggest a path to approval.

For aggressive growth investors, Viking's stock is a compelling play on obesity innovation. However, the biotech space's inherent risks mean this is not a “set it and forget it” investment. Monitor Phase 3 enrollment and interim data closely. If VK2735 delivers, it could be the next blockbuster in a growing market—and Viking's stock could soar with it.

In conclusion, VK2735 isn't just another GLP-1 drug—it's a contender to redefine the category. Stay tuned for the next phase of this story.