Viking Therapeutics Advances Obesity Programs for 2026 Amid Persistent Tolerability and Competitive Risks

What happened

Viking Therapeutics is positioning for a critical 2026 with advancements in both injectable and oral formulations of VK2735 for obesity, as highlighted in a recent article. The article emphasizes oral VK2735's double-digit weight loss in 13 weeks, potentially establishing leadership in the oral segment. However, the DeepValue report reveals that August 2025 Phase 2 data for oral VK2735 showed dose-limiting tolerability issues, resetting expectations and overshadowing the injectable program's progress. The company has de-risked commercialization through multi-year manufacturing agreements with CordenPharma and holds a strong cash position of $807.7 million as of June 2025, supporting operations through at least September 2026. Despite these preparations, Viking faces significant execution risks, including Phase III trial costs, intense incretin competition, and the need to improve oral tolerability to validate its optimistic outlook.

Implication

The injectable VK2735's move into Phase 3 is a key catalyst, but it must replicate Phase 2 efficacy and manage tolerability to compete in a crowded market. Oral VK2735's weight loss data is promising, yet high discontinuation rates require strategic adjustments, such as titration, to become viable. Secured manufacturing capacity with CordenPharma offers a commercialization edge if clinical milestones are met, reducing supply chain risks. Substantial cash provides runway through late 2026, mitigating near-term financing needs but not eliminating dilution concerns. Overall, the investment remains highly speculative, with upside dependent on successful trial outcomes and effective risk management in a competitive landscape.

Thesis delta

The new article reinforces 2026 as a pivotal year for Viking's obesity programs, aligning with the DeepValue report's timeline but adding an optimistic spin on oral VK2735's potential. However, no fundamental shift in thesis is warranted; it remains a speculative BUY contingent on Phase 3 success and oral tolerability improvements, with risks unchanged. Investors should critically assess the article's portrayal against the report's documented tolerability issues and competitive headwinds.