The weight loss market could reach $150 billion by 2035, according to some estimates. That's up from $15 billion last year. Driving this rapid growth are new breakthroughs in the field and soaring demand for medicines in this area, considering the vast number of diseases associated with obesity. Viking Therapeutics, a mid-cap biotech company, could successfully carve a niche in the field.
The company's leading candidate, VK2735, is undergoing a phase 3 study in a subcutaneous indication and recently completed mid-stage trials in an oral formulation. The medicine's efficacy looks promising so far. As a dual GLP-1/GIP agonist, it belongs to the same class of drugs as Eli Lilly's famous tirzepatide (Zepbound). While Viking might not exactly challenge Lilly and the other established leader in this field, Novo Nordisk, it won't need to. The biotech would gain significant prominence if its leading programs pan out and receive approval in the next few years.
It also bodes well that Viking Therapeutics developed both oral and subcutaneous formulations of VK2735. While injectable weight loss therapies have proved highly effective, they're also more expensive to manufacture and store. Oral pills could help increase access to these kinds of drugs by offering patients more affordable options.
Viking is working on another weight-loss candidate in preclinical studies and plans to request approval to start human clinical trials next year. Furthermore, the company has another exciting candidate, VK2809, an investigational treatment for metabolic dysfunction-associated steatohepatitis (MASH) that has passed phase 2 studies. Viking's shares could soar in the next five years if it makes solid progress across the pipeline.
As usual, there are risks to consider, especially potential clinical or regulatory setbacks. Viking Therapeutics probably isn't the safest stock to buy, given its clinical-stage status. But for those with an above-average appetite for risk, the company looks attractive, as it could become a well-established biotech down the line.
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