Leerink's Risinger on Eli Lilly downgrade: Triggered by disappointing obesity pill results
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Yahoo
39 minutes ago
- Yahoo
Viking Therapeutics stock falls 37% on high dropout rate in obesity trial
-- Viking Therapeutics (NASDAQ:VKTX) stock plunged as much as 37% Tuesday after revealing results from its Phase 2 VENTURE-Oral Dosing trial for its oral obesity treatment, while Eli Lilly (NYSE:LLY) shares gained 1.5% as analysts pointed to competitive advantages. The trial demonstrated that Viking's oral tablet formulation of VK2735, a dual GLP-1 and GIP receptor agonist, met its primary endpoint with patients losing up to 12.2% of body weight after 13 weeks compared to 1.3% for placebo. Despite the weight loss efficacy, the 28% treatment discontinuation rate among patients receiving VK2735 versus 18% for placebo raised significant concerns among investors and analysts. Mizuho analyst Jared Holz highlighted competitive disadvantages compared to Eli Lilly's offerings: "Data look inferior to LLY on almost all metrics and the thing to consider here is that patients discontinued at such a high rate over 13-weeks vs. LLY in the mid 20% range --- but over 72-weeks; A much longer trial, and therefor LLY looks far better head-to-head. This probably shutters hope for VKTX a bigtime player in the oral obesity market over the near to medium term." JPMorgan (NYSE:JPM) analyst Hardik Parikh offered a more balanced view, noting, "In 13 weeks, the three highest-dosing arms of 60/90/120mg showed avg pbo-adj weight loss of ~7.5%, 10%, 11%, which we think is very strong compared with other orals in development. Tolerability overall was manageable, but it was worse than we expected based on the ph1 performance." Parikh added that while the adverse event profile wasn't as clean as in Phase 1 trials, "we still think oral vk-2735 offers strong efficacy with a manageable tolerability profile." Viking reported that 99% of gastrointestinal-related adverse events were mild or moderate. The company also highlighted an exploratory maintenance dosing arm showing weight loss could be maintained at lower doses. The major adverse events included vomiting rates of 20-35% in the three highest dose arms compared to about 10% for placebo, and nausea rates of approximately 58% for patients on treatment versus 48% for placebo. Related articles Viking Therapeutics stock falls 37% on high dropout rate in obesity trial Tesla robotaxi trial impresses, pricing power clear: William Blair Palo Alto Networks gains after strong earnings and Bank of America upgrade
Business of Fashion
3 hours ago
- Business of Fashion
Viking's GLP-1 Pill Results Mixed, Shares Slump
Viking Therapeutics said on Tuesday its experimental weight-loss pill helped people with obesity lose up to 12.2 percent of their body weight over 13 weeks in a keenly watched study. Yet, shares of the company slumped nearly 35 percent in premarket trading after data showed that more patients who received Viking's drug stopped taking the treatment, compared to those who received placebo in the mid-stage study. Oral drugs are expected to take a significant share of the projected $150 billion weight-loss market, driven by their ease of use compared with injections such as Novo Nordisk's Wegovy and Eli Lilly's Zepbound. Viking's experimental oral pill is in a tight race with rival treatments being developed by the deeper-pocketed Novo and Lilly. Earlier this month, Eli Lilly said its experimental daily pill, orforglipron, showed a 12.4 percent weight loss in patients in a late-stage study over 72 weeks. In a separate trial, Novo's oral semaglutide has shown a weight loss of 15 percent over 68 weeks. Both the oral drugs are expected to be launched next year. Ahead of Viking's data, analysts expected weight loss in the range of 10 to 15 percent on average for the pill, known as VK2735. It had shown an 8.2 percent average weight-loss in a small early-stage trial. About 20 percent of those who received the drug discontinued due to an adverse effect, compared to 13 percent on placebo in the 280-patient study. The most common reasons for treatment discontinuation were gastrointestinal side effects, the company said. Like Lilly's Zepbound, Viking's drug also targets hormones known as GLP-1 and GIP that play a critical role in regulating the body's metabolism. Viking is testing both the oral and under-the-skin injection forms of the drug in overweight patients who have who at least one weight-related comorbidity. By Sriparna Roy and Siddhi Mahatole; Editors: Sriraj Kalluvila and Leroy Leo Learn more: GLP-1 Pills Will Be Priced Similarly to Injections, Wall Street Predicts US prices for obesity-treatment pills that Eli Lilly and Novo Nordisk aim to launch next year will likely be on par with their weight-loss injections, analysts and investors say.
Forbes
4 hours ago
- Forbes
Disappointing Obesity Pill Trial Results Cause Viking Therapeutics Shares To Crater
Shares of Viking Therapeutics plummeted more than 43% Tuesday after the company revealed poorer-than-expected mid-stage trial data for its experimental weight-loss pill, joining Eli Lilly with similar historic losses as pharmaceutical firms compete to develop an oral weight-loss drug. The company is the latest facing historic losses as pharmaceutical firms compete to develop a weight-loss pill. Getty Images Viking Therapeutics' shares dropped about 43% to just below $24 as of around 10:30 a.m. EDT, pacing what would be the company's largest single-day decline since the stock went public in May 2015 and marking a 69.5% drop from its 52-week high ($81.73) set in October 2024. Tuesday's stock plunge accounts for about $1.8 billion in losses for Viking Therapeutics, cutting the company's market capitalization by more than one-third to $2.8 billion. Viking Therapeutics earlier Tuesday reported mid-stage trial data for its weight-loss pill VK2735, which helped patients lose an average of 12.2% of their body weight after 13 weeks, compared to a 1.3% loss with a placebo. About 28% of patients discontinued VK2735 through the trial, however, with some patients reporting gastrointestinal side effects, including nausea and vomiting. The once-daily pill VK2735 had lower weight-loss results on average compared to Eli Lilly's orforglipron, which was tested over 72 weeks. The highest dose of Eli Lilly's once-daily treatment helped patients lose about 12.4% of their body weight in a late-stage trial, well below analyst expectations of 15%, according to FactSet. Those expectations appeared to trail Novo Nordisk's success: An oral version of its Wegovy treatment helped patients lose 15% of their body weight on average in a late-stage trial. Surprising Fact Eli Lilly's shares dropped more than 14% after reporting trial data for orforglipron on Aug. 7. That was the company's largest single-day loss since a 29% decrease on Aug. 8, 2000. Novo Nordisk shares increased more than 7% as a result. Viking Therapeutics emerged as a possible competitor in the growing weight-loss medication market in recent years as it develops an oral alternative. The company is also developing an injection, though both Viking Therapeutics and health experts have argued an oral weight-loss medication could greatly expand the market to more consumers. Novo Nordisk, whose Wegovy and Ozempic treatments have become increasingly popular, has its oral Wegovy treatment under regulatory review. A decision by the Food and Drug Administration is expected by late 2025. Other weight-loss pill trials have been abandoned: Pfizer's twice-daily danuglipron was dropped after testing suggested the drug could adversely affect the liver. Further Reading Forbes Eli Lilly Shares Plummet 14% Toward Worst Day In 25 Years—Here's Why It's Down By Ty Roush
