Strong weight reduction overshadowed by concerns over side effects
Viking Therapeutics (VKTX) shares plummeted nearly 45% on Tuesday after the biotech company reported troubling results from a Phase 2 study of its experimental weight-loss pill, VK2735. While the drug demonstrated significant weight-loss benefits, a high rate of patient dropouts due to side effects cast doubt on its commercial potential.
The trial showed patients taking VK2735 for 13 weeks lost an average of 12.2% of their body weight — about 26.7 pounds — compared with only 1.3% (2.9 pounds) for those given a placebo. These results underscore the pill’s potential as a powerful competitor in the obesity drug market.
However, the findings were clouded by safety concerns. Nearly 28% of patients on VK2735 discontinued treatment early, compared with 18% in the placebo group. Viking attributed most of the discontinuations to gastrointestinal (GI)-related adverse events, such as nausea and discomfort.
On a call with analysts, CEO Brian Lian noted that the majority of adverse effects occurred during the first week of treatment and lessened over time. He suggested that future trials could reduce side effects through lower starting doses or slower dose escalation, strategies that will be tested in an upcoming maintenance dosing study.
Despite management’s reassurances, the results rattled investors, sending Viking’s shares sharply lower and leaving the stock down nearly 40% so far this year. Analysts warn that while the efficacy of VK2735 is impressive, its tolerability issues could hinder its ability to compete with established players in the fast-growing weight-loss drug market, including Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound.
For now, Viking faces the challenge of proving that its promising pill can deliver meaningful weight loss without compromising patient safety — a balance critical to securing regulatory approval and market adoption.
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