Viking Therapeutics' VK2735 Phase 2 Enrollment Complete: A New Era in Obesity Treatment?

Viking Therapeutics (NASDAQ:VKTX) has reached a critical milestone in its pursuit of a transformative obesity therapy, completing enrollment for its Phase 2 trial of VK2735. The oral formulation of this novel dual GLP-1/GIP receptor agonist is now primed to deliver data that could redefine the company’s prospects—and the broader obesity treatment landscape. For investors, the stakes are high: VK2735’s potential to offer sustained, plateau-free weight loss through an orally administered pill could carve out a niche in a market dominated by injectable therapies like Wegovy and Mounjaro.

The Science Behind VK2735: A Dual Approach to Metabolic Health

VK2735 targets two key hormones, GLP-1 and GIP, which play central roles in regulating appetite, glucose metabolism, and insulin sensitivity. Unlike single-receptor agonists such as Ozempic (GLP-1 alone), VK2735’s dual mechanism aims to amplify weight loss and metabolic benefits. Early data from a subcutaneous formulation trial demonstrated remarkable results: participants achieved up to 14.7% weight loss from baseline after 13 weeks, with no signs of plateauing—a common limitation of existing therapies. Even four weeks after discontinuation, patients maintained an 8.3% reduction in weight, hinting at the drug’s potential to prevent regain.

The Phase 2 Trial: A Stepping Stone to Market Dominance

The current Phase 2 VENTURE-Oral Dosing Trial focuses on the oral tablet formulation, a critical differentiator. Investors should note that convenience drives adherence, and oral therapies historically outperform injectables in long-term use. The trial’s primary endpoint—percent change in body weight after 13 weeks—will directly test whether the oral form replicates the subcutaneous trial’s success. Positive results could accelerate plans for Phase 3 trials for the subcutaneous version in 2025, with oral data expected by late 2025.

The trial’s inclusion criteria—adults with BMI ≥30 kg/m² or BMI ≥27 kg/m² with comorbidities—aligns with the FDA’s focus on treating obesity as a chronic disease, a shift that has fueled demand for effective therapies.

Competing in a Booming Market: How VK2735 Stands Out

The obesity drug market is projected to reach $20 billion by 2030, driven by rising prevalence and the success of GLP-1/GIP agonists. However, competition is fierce: Novo Nordisk’s Wegovy and Lilly’s Mounjaro currently dominate, with combined sales exceeding $12 billion in 2023.

VK2735’s edge lies in its dual-agonist profile and oral delivery. While tirzepatide (Mounjaro) combines GLP-1 and GIP, its subcutaneous administration limits adherence. VK2735’s oral form could appeal to patients who avoid injections, while its sustained weight loss—without the “plateau” seen in other therapies—addresses a key unmet need.

Risks and Considerations for Investors

The path to commercialization is fraught with hurdles. Regulatory agencies may scrutinize VK2735’s safety profile, particularly given the gastrointestinal side effects common in GLP-1/GIP agonists. Additionally, Viking’s small market cap ($300 million as of Q3 2023) and limited resources could strain its ability to fund late-stage trials without partnerships.

Conclusion: A High-Reward, High-Risk Opportunity

VK2735’s Phase 2 data, expected in late 2025, will be pivotal. If the oral formulation matches the subcutaneous trial’s 14.7% weight loss, Viking could emerge as a serious contender in the obesity space. With a global obesity population of over 1.9 billion adults, even a modest market share would translate to blockbuster sales.

However, investors must weigh the risks. The stock’s volatility—up 120% in 2023 on optimism around earlier data—reflects its binary nature. A positive Phase 2 readout could send VKTX soaring, while negative results might trigger a collapse. For those willing to take the risk, VK2735 represents a shot at a slice of a growing, underpenetrated market. The question remains: Can Viking deliver the goods? The next 18 months will tell.