Wall Street's Next Weight-Loss Drug Stock: Viking Therapeutics

The weight-loss drug market has been on fire, with Eli Lilly and Novo Nordisk leading the charge. But Wall Street analysts have their eyes on another stock that could more than triple over the next 12 months: Viking Therapeutics (VKTX). With a promising pipeline and a bullish outlook from analysts, Viking Therapeutics is poised to make a splash in the obesity drug sector.

Viking Therapeutics' lead pipeline candidate, VK-2735, is a dual agonist of the glucagon-like peptide-1 (GLP-1) receptor and the glucose-dependent insulinotropic polypeptide (GIP) receptor. This drug is expected to enter phase 3 clinical studies in the second quarter of 2025 for treating obesity. In a Phase 2 study, VK-2735 demonstrated significant weight loss, with participants losing an average of 15.9% of their body weight after 16 weeks of treatment. This result is comparable to the established weight-loss drugs like Lilly's tirzepatide (Mounjaro/Zepbound), which showed an average weight loss of 15.7% in its Phase 3 trial.

Viking is also evaluating an oral tablet formulation of VK-2735 in Phase 2 testing. This could be more attractive for patients who are reluctant to receive injections, or for those trying to maintain weight loss achieved with an injection. This oral formulation could provide an additional option for patients and potentially increase market share.

Viking's pipeline isn't limited to weight-loss drugs. Its second candidate, VK-2809, targets the severe liver disease metabolic dysfunction-associated steatohepatitis (MASH), also known as nonalcoholic steatohepatitis (NASH). This diversification allows Viking to tap into multiple markets, reducing the risk associated with a single product.

Analysts are bullish on Viking Therapeutics' stock, with an average 12-month price target of $99.29, more than 200% higher than its current price of around $32. Of the 17 analysts surveyed by LSEG in February 2025, seven rated it as a "strong buy," and nine recommended it as a "buy," with only one analyst suggesting holding the stock.

While Viking Therapeutics faces potential risks and challenges, such as regulatory setbacks, competition, and market demand fluctuations, its promising pipeline and positive phase 2 results for VK-2735 and VK-2809 suggest that it has the potential to overcome these challenges and become a significant player in the obesity drug market. As the weight-loss drug market continues to grow, investors should keep an eye on Viking Therapeutics as a potential investment opportunity.