Viking Therapeutics Advances Pipeline Amid Critical Tolerability Concerns

What happened

Viking Therapeutics is aggressively pushing its GLP-1 obesity pipeline forward, with subcutaneous VK2735 now entering Phase 3 trials. The company's Phase 2 oral data demonstrated up to 14.7% weight loss in 13 weeks, but high discontinuation rates due to tolerability issues have tempered optimism. A Seeking Alpha article highlights this progress and a discounted market cap, yet downplays these setbacks. The DeepValue report notes that the subcutaneous path is more de-risked with secured manufacturing capacity, but intense competition and clinical execution risks persist. With $807.7 million in cash supporting runway through at least September 2026, the company has resources for pivotal trials, though investor sentiment hinges on overcoming oral challenges and delivering successful Phase 3 outcomes.

Implication

The subcutaneous VK2735 program offers a near-term catalyst with Phase 3 initiation, supported by manufacturing readiness and cash reserves. However, oral VK2735's high discontinuation rates require unproven mitigation strategies to unlock optionality. Cash runway reduces near-term financing risk, but operational burn must align with milestone execution. Competition from established and emerging incretin therapies demands differentiated efficacy and tolerability for market success. Overall, this remains a high-risk investment, with value heavily dependent on clinical outcomes and competitive positioning.

Thesis delta

The Seeking Alpha article emphasizes Viking's pipeline momentum and market potential but glosses over critical oral tolerability issues detailed in the DeepValue report. This does not shift the thesis, which already centers on subcutaneous VK2735 as the primary value driver, with oral success contingent on addressing discontinuations.