Viking Therapeutics soars 104% after its GLP-1 weight-loss drug posts impressive results in Phase 2 trial

• Viking Therapeutics stock soared as much as 104% on Tuesday after a successful drug trial.
• Viking's GLP-1 weight loss drug led to a significant reduction in body weight among patients.
• The drug could ultimately compete with weight loss drugs from Eli Lilly and Novo Nordisk if its Phase 3 trials prove successful.

Shares of Viking Therapeutics soared as much as 104% on Tuesday after it reported positive results for its Phase 2 trial of a GLP-1 weight loss drug.

Viking Therapeutics saw its market valuation soar to $7.5 billion from less than $4 billion on Tuesday. The stock was trading at $82.61 at 1:39 p.m. in New York. 

The drug, dubbed VK2735, is a GLP-1/GIP dual agonist drug that targets significant weight loss in patients with obesity. The drug is administered via an injection, similar to GLP-1 drugs from Eli Lilly and Novo Nordisk.

In a Phase 2 trial, VK2735 showed a statistically significant 13.1% body weight loss compared to the placebo group after 13 weeks. That data represents faster weight loss when compared to competing GLP-1 drugs that are already on the market.

Shares of Eli Lilly and Novo Nordisk both fell about 1% on Tuesday.

The data also observed no plateau in weight loss, suggesting that patients could lose even more weight the longer they take it.

"Robust weight loss compared with placebo was observed early across all doses evaluated in the VENTURE study, and continued throughout the treatment period in all treatment groups. No evidence of a plateau was observed at Week 13 for any VK2735 dose, suggesting further weight loss might be achieved from extended dosing periods," Viking CEO Brian Lian said.

One element of the drug trial showed that Viking's GLP-1 weight loss drug could have more tolerable side effects than other GLP-1 drugs like Ozempic and Mounjaro. Most of VK2735's reported side effects were considered "mild" or "moderate."

"Across the combined VENTURE study arms, the weekly rate of nausea did not exceed 5% at any point after the first week of treatment," Viking Therapeutics said. 

Viking's positive results could set the biotech up for a partnership or buyout by a large-cap pharmaceutical company that doesn't have exposure to the budding GLP-1 drug market, especially considering that Viking generates no revenue and still has to fund a Phase 3 trial of the drug. 

Pfizer abandoned its GLP-1 weight loss drug late last year poor tolerability among trial participants, while experiments from Amgen have yet to conclude that it has a winner in the GLP-1 space.