Viking Therapeutics' Oral Obesity Drug Advances to Phase 3 Testing. Is Now the Time to Buy This Biotech Stock?
2026-10-10 16:15
•Alex Carchidi •The Motley Fool
•• •• Axe Cap view
Viking Therapeutics' Race in a Crowded Obesity Drug Market
Viking's Phase 3 oral weight-loss candidate faces tough competition from Eli Lilly's better-tolerated treatments.
Viking Therapeutics has delivered promising Phase 2 results for VK2735 with over 12% average weight loss, but the market doesn't just reward promising data. Side effects forced 20% of patients off treatment, double the placebo group’s rate. That’s a red flag when Eli Lilly’s Foundayo achieves similar weight loss but with much lower dropouts and longer-term data. For South African investors, biotech plays like Viking don’t map directly onto our market, but the bigger picture matters: a stronger USD often supports local tech proxies like Naspers and Prosus when global innovation looks promising. Yet Viking’s uphill climb suggests no imminent breakthrough that could broadly energize our tech stocks or USD/ZAR. The safest stance is to watch Viking closely but avoid committing amid heavy competition and unclear commercial prospects. This view could be wrong if Viking’s oral formulation drastically improves tolerability or if it finds a patient niche ignored by Eli Lilly. this is just our opinion and not financial advice
Avoid buying Viking for now given its tough market position and side effect concerns. Watch USD/ZAR for signs of tech sentiment shifts linked to biotech news.
- VKTX
- USD/ZAR
- Viking’s oral drug unexpectedly gains market share
- USD strength fades, affecting tech investors indirectly
5/10
Viking Therapeutics is advancing its oral weight-loss drug VK2735 to Phase 3 trials, showing 12.2% weight loss in Phase 2 testing. However, the company faces significant competitive challenges from established players like Eli Lilly's Foundayo, which demonstrated better tolerability with lower discontinuation rates. While Viking's injectable formulation shows promise with potential monthly dosing differentiation, the biotech will struggle to gain market traction in an increasingly crowded obesity drug market dominated by incumbents.
Our take is based on reporting first published by The Motley Fool.