Viking Therapeutics (VKTX 0.92%) investors have seen a handsome return over the past three years, and this demonstrates that the real battle over biopharmaceutical stocks is won in the lab and clinical trials. Viking Therapeutics doesn't have a commercial product on the market yet and has never generated a dollar in revenue. Yet, it's made many investors wealthy.
One thousand dollars invested three years ago is now worth an incredible $10,640 as of Aug. 11.
Viking Therapeutics: The best may be yet to come
The excitement around the stock centers on its lead development compound, VK2735. It's a GLP-1/GIP dual agonist for the treatment of obesity. Vikings VK2735 is following in the footsteps of Eli Lilly's GLP-1/GIP dual agonist tirzepatide (branded as Zepbound), and investors are hoping VK2735 can achieve similar levels of success.
Where is this promising drug now
VK2735 is in phase 3 trials in subcutaneous (injection) form, with results probably not due until 2027, and, arguably more excitingly, it's in phase 2 trials in an oral form. The latter has obvious benefits of convenience and comfort for patients, and management expects to report on the phase 2 trial this year.
Investors have high hopes, as the phase 2 subcutaneous trial resulted in up to 88% of patients experiencing more than 10% weight loss.
Image source: Getty Images.
The phase 1 trials in oral form were also impressive (remember that phase 1 trials are fundamentally exploratory and often aim to understand safety and tolerability), with a mean weight loss of 8.2% after 28 days of dosing.
These results are enough to encourage Viking investors that VK2735 could prove to be a hugely successful compound, and the results of the latest tests of the oral form are eagerly anticipated, not least by potential larger pharmaceutical companies that may try to buy the company and take VK2735 (oral) through phase 3.
