Viking Therapeutics, Inc. (VKTX): A Bull Case Theory

We came across a bullish thesis on Viking Therapeutics, Inc. on HalfBakedInnovations’s Substack by Biotech Distilled. In this article, we will summarize the bulls’ thesis on VKTX. Viking Therapeutics, Inc.'s share was trading at $29.30 as of February 9th.

Viking Therapeutics (VKTX) has emerged as a compelling scientific and strategic play in the obesity and metabolic therapy space, particularly following Novo Nordisk’s approval of the Wegovy® Pill, which secures first-mover dominance starting January 2026. Viking’s lead asset, VK2735, is a dual GLP-1/GIP agonist with a proprietary oral formulation that appears to act significantly faster than Novo’s pill, achieving 12–15% weight loss in 13 weeks versus Novo’s 16.6% over 64 weeks.

This positions Viking as a high-potency alternative in a market now desperate for effective competitors, making the company an attractive acquisition target for pharma giants like Pfizer, Roche, or Amgen. Despite the scientific promise, challenges remain: the high oral API load drives a 35% vomiting rate at top doses, and being second-to-market entails navigating entrenched brand loyalty and formulary barriers. Viking’s pipeline extends beyond obesity, with VK2809 targeting NASH/MASH and VK0214 addressing X-ALD, both leveraging well-validated mechanisms with strong Phase 2 results.

Additionally, the preclinical Amylin dual-agonist (DACRA) program offers a hedge for next-generation weight-loss therapies, potentially enabling Viking to develop a CagriSema competitor in-house. Financially, Viking is well-capitalized with $714.6M in cash and roughly 2.5 years of runway, sufficient to fund Phase 3 trials, and holds a mix of owned and in-licensed patents through a Master License with Ligand Pharmaceuticals.

The scientific conviction is high, commercial execution risk is medium, and M&A appeal is extreme. Investors may consider accumulation on dips, with upside driven by either resolving tolerability in Phase 3 or securing a strategic buyout, while caution is warranted given Novo’s market lead and the oral pill’s current side-effect profile. Viking represents a high-risk, high-reward position with significant binary catalysts over the next two years.

Previously, we covered a bullish thesis on Viking Therapeutics, Inc. (VKTX) by Kontra Investments in February 2025, which highlighted VK2735’s rapid efficacy, dual GLP-1/GIP mechanism, and potential of oral and subcutaneous formulations. VKTX’s stock price has appreciated by approximately 3.46% since our coverage. Biotech Distilled shares a similar perspective but emphasizes post-Novo Pill positioning, high-potency VK2735, and Viking’s broader pipeline.

Viking Therapeutics, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held VKTX at the end of the third quarter which was 43 in the previous quarter. While we acknowledge the risk and potential of VKTX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VKTX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.