Viking Therapeutics (VKTX -40.80%) stock collapsed on Tuesday, down 41.4% through 10:25 a.m. ET after reporting what pharmaceutical analysts are calling "mixed results" for its new GLP-1 weight loss pill, VK2735.
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Viking and VK2735
In a press release this morning, Viking put a brave face on results of its "Phase 2 VENTURE-Oral Dosing Trial of VK2735 Tablet Formulation." The study achieved primary and secondary endpoints, said Viking, "demonstrating statistically significant reductions [of 12.2%] in body weight with once-daily VK2735 dosing as compared to placebo." Weight loss continued after the 13 weeks were done, with no "plateau" observed in weight reduction post-study.
Viking also said the 13-week study showed VK2735 to be "safe and well-tolerated" by patients, with 99% of gastrointestinal side effects mild or moderate. And yet, in a disturbing note, it seems 20% of the participants in Viking's study disagreed, dropping out of the study "due to side effects," as one analyst wrote.
This, it seems, may be what's worrying Viking investors today -- this, and the fact that the 12.2% weight loss from VK2735 isn't all that much better than the 11.5% weight loss rival Eli Lilly recently reported from its own GLP-1 weight loss pill study.
Is Viking Therapeutics stock a buy?
Don't get me wrong: A weight loss pill that requires no injections or needles and helps people lose nearly 1% of their body weight in a week sounds pretty great. It just may not mean that Viking has come up with a wonder drug to beat all other wonder drugs.
It means Viking may not steal as much market share from Eli Lilly and Novo Nordisk as investors were hoping. And if that means Viking stock will continue losing money, it might mean Viking stock is a sell.
