Here's How VKTX's Obesity Drug Is Moving Quickly Through Phase III

Viking Therapeutics VKTX is one of the few companies with a late-stage obesity candidate in its pipeline. The company is developing VK2735, an investigational novel, dual GLP-1 and GIP receptor agonist (RA), in multiple clinical studies as oral and subcutaneous (SC) formulations for treating obesity.

VKTX is conducting two late-stage studies — VANQUISH-1 and VANQUISH-2 — which are evaluating the SC version of VK2735 over a 78-week treatment period. Initiated last year, the VANQUISH-1 study is evaluating the drug in obese adults with at least one weight-related co-morbid condition, while the VANQUISH-2 study is focused on obese or overweight adults with type II diabetes.

In November, Viking Therapeutics announced that enrollment had been completed in the VANQUISH-1 study, marking a key milestone just months after study initiation in June. The study recruited about 4,650 patients, surpassing the initial target of 4,500 patients. The company is on track to complete enrollment of nearly 1,100 patients in the VANQUISH-2 study before the end of this quarter.

Such rapid enrollments suggest strong demand and interest in VK2735. This aligns with the market expansion for weight loss drugs fueled by the success of Eli Lilly’s LLY Zepbound and Novo Nordisk’s NVO Wegovy. The quick recruitment also indicates high patient and physician enthusiasm, which could translate into significant commercial potential if the drug proves effective and safe.

Competition Heating Up in the Obesity Space

According to research conducted by Goldman Sachs, the obesity market in the United States is expected to reach $100 billion by 2030. This is evident as both Eli Lilly and Novo Nordisk already generate a significant portion of their topline from the sales of their respective obesity drugs — a trend which is expected to continue in future quarters. To maintain their dominance in the market, both Eli Lilly and Novo Nordisk are investing broadly in obesity and have several next-generation obesity drugs (both oral and injectable medications) currently either in clinical development or under regulatory review.

The obesity treatment landscape is evolving rapidly. Recently, Novo Nordisk secured FDA approval for the pill version of Wegovy, marking approval for the first GLP-1 RA approved in an oral form for weight management. Compared with injectable formulations, the pill offers a far more convenient administration option, significantly lowering treatment burden and potentially improving patient adherence. Novo Nordisk expects to launch the Wegovy pill later this month and has priced the drug at $149 per month for patients without insurance.

Eli Lilly is also moving quickly in this direction. Last month, it submitted a regulatory filing seeking approval for its oral obesity candidate, orforglipron, setting the stage for a potential launch next year. The arrival of effective oral GLP-1 therapies raises the bar for differentiation and could reshape patient and physician preferences across the obesity market.

That said, this push toward oral pills does not signal a retreat from injectables for either market leader. Eli Lilly continues to invest aggressively across next-generation obesity therapies with diverse mechanisms of action. Its pipeline also includes retatrutide, a triple-hormone (GIP/GLP-1/glucagon) agonist being developed as a next-generation injectable.

Novo Nordisk is similarly expanding its next wave of obesity treatments. It is advancing a next-generation therapy called amycretin, both as an injectable and an oral formulation. NVO plans to initiate a phase III program for amycretin in the first quarter of 2026, reinforcing its strategy of maintaining leadership across multiple modalities rather than relying on a single product class.

VKTX’s Price Performance, Valuation and Estimates

Shares of Viking Therapeutics have underperformed the industry in the past year, as seen in the chart below.

From a valuation standpoint, VKTX is trading at a premium to the industry. Going by the price-to-book value (P/B) ratio, the company’s shares currently trade at 5.58 times trailing book value, higher than 3.61 for the industry. The stock is also trading above its five-year mean of 3.65.

Estimates for Viking’s 2025 loss per share have widened from $2.63 to $2.68 in the past 60 days. During the same timeframe, loss per share estimates for 2026 have increased from $3.80 to $3.88.

Viking Therapeutics currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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