Viking Therapeutics Gains Ground Amid Novo Nordisk's Clinical Setback

Viking Therapeutics gains as Novo Nordisk's CagriSema lags Lilly's tirzepatide. Viking's dual-format drug VK2735 advances in Phase 3 trials with strong cash reserves.

Shares of Viking Therapeutics experienced a significant rally this week, capitalizing on a competitive shift in the obesity drug market triggered by disappointing clinical data from Danish pharmaceutical giant Novo Nordisk. The San Diego-based biotech firm benefited directly as Novo's next-generation weight-loss candidate fell behind rival therapy from Eli Lilly.

Competitive Landscape Shifts Following Trial Results

The competitive dynamic was altered by results from the Phase 3 REDEFINE 4 trial. Data released on February 23 revealed that Novo Nordisk's CagriSema—a fixed-dose combination of cagrilintide and semaglutid—achieved an average weight loss of 23 percent over 84 weeks. This was notably surpassed by Eli Lilly's tirzepatide, which demonstrated approximately 25.5 percent weight reduction in a head-to-head comparison.

The market reaction was immediate and severe for Novo Nordisk, which saw substantial erosion in its market value. Conversely, Viking Therapeutics' stock climbed nearly 11 percent on Monday, February 23. This development illustrates how a setback for a major player can create strategic breathing room for smaller developers, provided their own pipeline candidates demonstrate compelling efficacy.

Viking's Dual-Format Candidate: VK2735

At the core of Viking's pipeline is VK2735, a dual GLP-1/GIP receptor agonist. The company is distinguishing itself by developing this single molecule in both injectable and oral tablet formulations, claiming to be the only entity advancing the same compound in both delivery formats.

The clinical pathway for VK2735 is well underway. The Phase 3 VANQUISH-1 study, involving over 4,500 patients, is fully enrolled and will run for 78 weeks. A second Phase 3 trial, VANQUISH-2, is recruiting approximately 1,100 participants with obesity and type 2 diabetes, with enrollment completion targeted for the first quarter of 2026. For the oral version, Viking has received FDA clearance to proceed and plans to initiate Phase 3 trials in the third quarter of 2026.

Previously published Phase 2 data, featured in the journal Obesity in January 2026, showed promising results. The injectable form of VK2735 demonstrated weight loss of up to 14.7 percent after 13 weeks, while the oral tablet achieved up to 12.2 percent reduction over the same period.

Financial Runway and Broader Pipeline

Viking Therapeutics ended 2025 with a robust cash position of $706 million in liquid assets. Management states this capital is sufficient to fund its ongoing Phase 3 programs and additional pipeline initiatives. The company's research and development expenses rose to $345 million in 2025, a significant increase from $101.6 million the previous year.

As a clinical-stage company, Viking has not yet generated revenue. Its net loss per share over the trailing twelve months stood at $3.19. Beyond VK2735, the company is developing a novel amylin agonist. An Investigational New Drug (IND) application for this candidate is scheduled to be submitted to the FDA in the first quarter of 2026, with data from a maintenance dose study anticipated in the third quarter.

An Intensifying Market Battle

The competition in the obesity pharmacotherapy sector continues to escalate. Novo Nordisk launched an oral version of Wegovy in early 2026, securing an early lead in the tablet segment. Eli Lilly is also progressing with its oral candidate, orforglipron, which is nearing FDA approval.

Investor attention remains high. Viking's management team is scheduled to participate in several investor conferences in March, including the Leerink Partners Global Healthcare Conference and the Jefferies Biotech on the Beach Summit. The company's next quarterly financial report is expected on April 29.