Viking Therapeutics (VKTX) Delivers Great VK2735 Results: Here's a Word of Caution
The company recently delivered some exciting trial data, but it also needs to deliver in the second part of the trial.
Overview
The recent maintenance trial results from Viking Therapeutics (NASDAQ: VKTX) led to a surge in the share price. In its aftermath, management announced a $275 million common stock offering and $225 million in convertible senior notes to support the development of its drug pipeline. The trial results are exciting and further support management's VK2735 program, but investors should note that the trial did not include VK2735 in oral form, so there's still a question mark around it.
VK2735 is a GLP-1 and GIP agonist in development to treat obesity and patients with obesity and type 2 diabetes. Following favorable Phase 2 data, it's already in Phase 3 trials in subcutaneous (injectable) form, and management expects to start Phase 3 trials for VK2735 in oral form this year.
Details
Viking's drug candidate has two key advantages that could enable it to build a profitable niche in the highly competitive weight-loss treatment market, currently dominated by Eli Lilly and Novo Nordisk. Specifically, the Phase 2 (subcutaneous) data suggest that VK2735 generates rapid weight loss compared with peers. In addition, VK2735 is being developed as a dual formulation, in which an initial rapid weight-loss dose in subcutaneous form can be followed by more convenient oral VK2735 dosing.
Source
Originally published at www.fool.com.
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