If you're looking to capitalize on the rapidly growing market for weight loss drugs, you can do so in different ways. One strategy is to invest in companies like Eli Lilly or Novo Nordisk that already dominate this space. Another is to target smaller biotechs looking to disrupt this niche over the next five to 10 years.
The second approach is riskier, but arguably offers more upside potential. If you can stomach the risk and volatility, putting $5,000 (that you're not saving for emergencies) into a smaller weight-loss-focused drugmaker like Viking Therapeutics (VKTX 2.46%) could lead to outstanding returns over the next decade.
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Why Viking Therapeutics?
According to one estimate, 277 obesity-drug candidates were in development as of mid-2025. Most will likely never earn approval. The majority of medicines that enter the clinic never do, and that's true across every therapeutic area.
Here's another known trend: the probability of success rises dramatically as new compounds move into later stages of development. Many of those weight-loss candidates are in preclinical or phase 1 clinical trials. Viking Therapeutics' leading weight-loss therapy, a GLP-1 medicine called VK2735, is already in phase 3 clinical trials. That doesn't guarantee approval, but it makes it far more likely than if the candidate were still just in phase 1.
NASDAQ: VKTX
Key Data Points
VK2735's mid-stage results were strong; few drugmakers have posted phase 2 results of this caliber. Viking is developing VK2735 in both subcutaneous and oral formulations, and is exploring different combinations to help patients keep the weight off after they lose it, a challenge in the pharmaceutical industry.
Viking Therapeutics' promising leading candidate and multipronged approach says a lot about the company. If it can execute nearly flawlessly by posting strong phase 3 results for VK2735 and earning approval for the medicine in both formulations, it could carve out a niche for itself in this large and rapidly expanding market. That could lead to excellent financial results and superior stock-market returns over the next 10 years.
Things to keep in mind
Could Viking's stock skyrocket in the coming years? Yes. But keep in mind that if it does encounter clinical or regulatory setbacks, the stock could also sink. And now that the weight-loss market is becoming even more competitive, a clinical success could be a commercial failure.
Viking Therapeutics' VK2735 needs to pass phase 3 studies with flying colors to have a chance at making a serious dent in the market and at sending the company's shares to the moon. That's a fairly high bar. And that's why you should consider investing $5,000 in the stock only if you have above-average risk tolerance.
