Shares in Viking Therapeutics (VKTX 7.91%) were up more than 16% in the week to Thursday at 1 pm. The move comes after the announcement of another acquisition of a small-cap biopharmaceutical company by a pharmaceutical giant. This time, it's Novo Nordisk paying $5.2 billion for Akero Therapeutics, a deal that follows hot on the heels of Pfizer's $7.3 billion deal to buy Metsera.
What do these developments have to do with Viking Therapeutics?
There are two key considerations. First, the deals suggest that the fervor for mergers and acquisitions in the industry is heating up, and as it does, the list of candidates gets smaller.
Second, both deals have a connection to the weight loss market, as Novo Nordisk is a leading player in the market, and Metsera's obesity drug candidates help fill a gap in Pfizer's pipeline.
That's relevant for Viking Therapeutics because it has an obesity drug, VK2735, in a stage 3 trial (subcutaneous form) and recently completed a phase 2 trial of VK2735 in oral form, albeit with disappointing safety and tolerability data (efficacy was good).

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Still, a larger pharmaceutical company (who have more resources and experience to take a drug through phase 3) may be willing to try and partner with Viking or buy the company outright to take oral VK2735 through phase 3.
The possibility appears somewhat greater in light of the current deal flow in the industry.