Viking Therapeutics shares tumbled after topline data from its mid-stage weight loss pill trial raised concerns over tolerability.
Wall Street analysts rushed to defend Viking Therapeutics on Tuesday after topline results from its Phase 2 Venture-Oral trial of VK2735 drew investor concerns about tolerability.
Leerink said weakness in the shares is being driven in part by “elevated expectations,” concerns around VK2735’s safety and tolerability compared to “the pristine Phase 1b experience,” and some negative perception of the catalyst path and strategic optionality, the Fly reported.
The firm called the weakness “overdone” based on the totality of the data, the optionality to leverage both formulations, and the opportunity to mitigate GI-related adverse events. Leerink has an ‘Outperform’ rating and $118 price target.
Jefferies said Viking reported “class-leading weight loss” in the Phase 2 oral drug trial as well as “good maintenance” and argued the market is “overreacting” on the gastrointestinal adverse event discontinuation profile, while “underappreciating that it could be modulated by dosing optimization.”
The firm kept a ‘Buy’ rating and $101 price target.
Additionally, Stifel reiterated a ‘Buy’ rating and $95 price target, telling investors the reaction was an “overreaction.”
The firm said VK2735 still stands out as the most potent and flexible peptide among current contenders, noting the trial demonstrated dose-dependent weight loss, progressive weight loss at all doses with no plateau, and early statistical significance over 15 mg.
Stifel added that the high-to-low dose maintenance cohort showed rapid induction weight loss that progressed at the lower dose, suggesting a viable commercial angle and ideal maintenance positioning.
H.C. Wainwright analyst Joseph Pantginis said the weight loss results were “encouraging” and the tolerability profile “something that can be optimized.”
He highlighted factors contributing to the negative reaction, including “sell the news,” the evolving GLP-1 competitive landscape, and “misleading” cross-trial comparisons to Phase 3 data from Eli Lilly and Novo Nordisk. Pantginis reiterated a ‘Buy’ rating and $102 price target.
The Phase 2 trial enrolled 280 adults with obesity or who were overweight with at least one co-morbidity. VK2735 is being developed in both oral and injectable forms for obesity and other metabolic disorders.
On Stocktwits, retail sentiment for Viking Therapeutics was ‘extremely bullish’ amid ‘extremely high’ message volume, making it one of the most trending equities on the platform.
One user said the Phase 2 trial was a dose-ranging study that met both its primary and secondary endpoints, calling the selloff “unjustified.”
Another user said Viking was drawing heavy criticism from all sides, comparing it to “cockroaches scattered when the lights came on.”
They added that while the day was rough, the Viking ship is “still afloat” with multiple programs ahead, noting the endpoints were met and more insight into the data is expected soon. They expressed hope for a rebound.
Viking Therapeutics’ stock has declined 39.5% so far in 2025.
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