Viking Therapeutics (NASDAQ: VKTX) is making its move. The company is developing VK2735, a dual agonist drug designed to compete directly with Eli Lilly’s Zepbound and Novo Nordisk’s Wegovy, two of the biggest players in the fast-growing obesity treatment space.

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As of February 7, 2025, Viking shares are trading at $31.46, down 6.09 percent after earnings. But the long-term outlook remains intact. The dip has not changed the story. Viking is executing on clinical milestones and positioning itself to challenge incumbents with a differentiated approach.

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VK2735: Dual Mechanism, Dual Format

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VK2735 targets both the GLP-1 and GIP receptors, aiming to deliver stronger metabolic effects than GLP-1 alone. Viking is also developing the drug in two formats: a weekly injectable and an oral pill. That dual-path strategy could matter significantly for patient access and long-term adoption.

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The oral formulation in particular has drawn attention. If it continues to show meaningful weight loss in larger studies, Viking could offer something that neither Lilly nor Novo currently delivers at scale: a convenient, effective pill-based option.

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Clinical Progress and Upcoming Catalysts

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Viking has remained focused on execution. Key developments include:

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• VENTURE Trial (Phase 2): Launched in September 2023, this study evaluates the weekly injectable version of VK2735 in real-world obesity patients. Early data shows dose-dependent weight loss and strong tolerability.
• Oral VK2735: In March 2024, Viking reported positive results from a multiple ascending dose trial, with consistent weight loss across doses. If confirmed in upcoming trials, this could mark one of the first viable oral obesity therapies with this level of efficacy.
• Next trial phase begins in Q2 2025, with expanded enrollment and endpoints that will move the program closer to pivotal-stage development.

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Viking is also advancing an amylin-calcitonin hybrid therapy, adding depth to a pipeline that already has the attention of institutional investors.

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Short-Term Volatility, Long-Term Setup

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The post-earnings decline reflects short-term trading. Shares are still down over 68 percent from their February 2024 high of $99.41, leaving room for significant upside if clinical momentum continues.

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For investors, the current price reflects limited optimism relative to what Viking is building. The risk-reward profile has shifted, particularly for those taking a longer view.

Can Viking Break Into a $100 Billion Market?

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The obesity treatment market is projected to exceed $100 billion annually, and most of that is currently controlled by two companies. Viking is attempting to enter that space with a novel compound and a delivery format that could improve patient compliance and broaden reach.

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It is not there yet. But if the Phase 2 and upcoming Phase 3 data support continued development, Viking will not stay a small-cap biotech much longer.

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