Could This Mid-Cap GLP-1 Stock Be a Better Buy Than Eli Lilly?
2026-09-28 13:01
•David Jagielski, Cpa •The Motley Fool
•••• •• Axe Cap view
Viking Therapeutics: High Risk, High Reward in GLP-1 Space
Smaller GLP-1 drug developer Viking Therapeutics might surprise bigger names like Eli Lilly if their promising weight-loss drug clears key hurdles.
Viking Therapeutics, with its promising GLP-1 candidate VK2735, offers a classic biotech gamble. The drug’s clinical data—showing up to 19% weight loss with good maintenance—is impressive and could disrupt the market. Compared to Eli Lilly, which dominates this space and has seen incredible gains over the past five years, Viking is a tiny fish with a $4.1 billion market cap and no approved drugs yet. That means higher risk but also more upside if the drug gains approval or attracts acquisition interest. Local investors should watch USD/ZAR closely, as biotech flows often impact the rand through broader risk sentiment. The main caveat? Clinical success doesn’t guarantee regulatory approval or commercial triumph, and Viking's financial runway is thinner than Lilly’s. If you prefer steadier bets, Lilly remains the safer hold, but growth seekers might find Viking an intriguing speculative position. this is just our opinion and not financial advice
I’d watch Viking cautiously from the sidelines—perhaps a small, speculative buy—but avoid loading up given the inherent risks. Keep Eli Lilly as a core long-term hold due to its dominant position and proven track record.
- VKTX
- LLY
- USD/ZAR
- Viking’s drug may fail regulatory approval or commercialization
- Rand weakness from global risk-off could hurt biotech sentiment
5/10
Viking Therapeutics' GLP-1 drug VK2735 showed promising clinical trial results with 16-19% weight loss and strong maintenance rates, causing the stock to surge. While riskier than Eli Lilly due to its smaller $4.1B market cap and lack of approved drugs, Viking could offer significant upside potential through drug approval or acquisition by a larger healthcare company.
Our take is based on reporting first published by The Motley Fool.