The Market’s Lament: Reflections on Viking Therapeutics Stock’s Plunge

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anti-obesity treatments are often prescribed to relatively healthy individuals for prolonged durations, thus the ire of physicians evaluating these drugs tends to focus more significantly on safety than on mere efficacy. Were Viking Therapeutics to convince the FDA of VK2735’s viability, persuading practitioners to prescribe a remedy that induced such discomfort in a third of its trial participants would surely present itself as a challenge most formidable.

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The Resilience of Viking Therapeutics’ Pipeline

While the oral incarnation of VK2735 may appear adrift in the currents of time, it is but one vessel in the expansive fleet of Viking’s offerings. In June, the company embarked upon a phase 3 trial featuring its injectable variant. This Vanquish trial prognosticates a recruitment of around 4,500 adults grappling with obesity or those bearing the added weights of comorbidities such as diabetes.

In previous encounters, the phase 2 trial for VK2735 hinted at a potential weight loss of up to 14.7% within that crucial period. Such rapid weight loss suggests that, given the chance, it could fiercely contend with Eli Lilly’s tirzepatide. The forthcoming results from the Vanquish trial, anticipated in but two years, shall provide insights into its fate and competitiveness.

Even should VK2735 venture into oblivion due to unforeseen trial complications, Viking Therapeutics encompasses other bastions of potential. A duo of thyroid hormone receptor-beta agonists remains in clinical testing, with VK2809, an injectable MASH treatment, having succeeded in a previous phase 2 ordeal, while VK0214, an oral counterpart, has displayed encouraging efficacy in a phase 1 trial concerning rare diseases.

An Invitation to Embrace Opportunity in the Midst of Uncertainty

As is commonly known, those stocks boasting commercial potential often trade at mid-to-high single-digit multiples of sales. With its market capitalization tumbling to a mere $2.9 billion amid recent tribulations, the air is thick with skepticism regarding injectable VK2735 and the entirety of Viking’s formidable pipeline.

Though the erosion of oral VK2735 brings with it a disheartening aura, it does not signal a farewell to the paths of this pre-commercial-stage innovator. For the astute investor, those possessing a strong risk tolerance may find now a beguiling moment to enrich a diversified portfolio with a few shares, as one might add color to a somber landscape of existence.

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2025-08-21 13:01