Shares of Viking Therapeutics (NASDAQ:VKTX) tumbled as much as 37% on Tuesday after the company released data from its Phase 2 VENTURE-Oral Dosing trial for its experimental oral obesity treatment. In contrast, Eli Lilly (NYSE:LLY) stock gained 1.5% as analysts emphasized the strength of its competing therapies.
The trial results showed that Viking’s oral formulation of VK2735, a dual GLP-1 and GIP receptor agonist, met its primary endpoint. Patients on the drug lost up to 12.2% of body weight over 13 weeks, compared with just 1.3% for those on placebo. However, concerns mounted after the study revealed a 28% dropout rate among patients receiving VK2735, versus 18% in the placebo group.
Mizuho analyst Jared Holz said the data highlighted Viking’s competitive challenges: “Data look inferior to LLY on almost all metrics and the thing to consider here is that patients discontinued at such a high rate over 13-weeks vs. LLY in the mid 20% range — but over 72-weeks; A much longer trial, and therefore LLY looks far better head-to-head. This probably shutters hope for VKTX a bigtime player in the oral obesity market over the near to medium term. Pipeline and/or better versions needed to get investors and patients more interested. LLY could bounce a bit early but oral weight-loss programs continue to be highly controversial in terms of how they are perceived by the Street. A tough day for retail investors ahead – that have been pumping this thing like a 1991 Reebok Dee Brown.”
Although Viking noted that 99% of gastrointestinal-related adverse events were mild or moderate, the high discontinuation rate weighed heavily on investor sentiment. The company also pointed to an exploratory maintenance dosing arm of the study, which suggested weight loss could be preserved at reduced dosages.
Viking Therapeutics stock price
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