Shares of Viking Therapeutics (VKTX 7.92%) had skyrocketed by 25% as of 11:08 a.m. ET on Tuesday. That big gain came after the company announced results from a phase 1 clinical study evaluating an oral formulation of its experimental obesity drug VK2735.
Viking reported that patients in the study who received oral VK2735 experienced up to 3.3% placebo-adjusted mean weight loss after 28 days. Up to 57% of participants receiving VK2735 achieved weight loss of 5% or more. The safety and tolerability of the experimental drug were also encouraging, with all reported side effects either mild or moderate.
Why investors are so excited about Viking's results
At first glance, you might wonder why there's so much excitement about Viking's phase 1 results. The oral version of VK2735 didn't come close to delivering the 13.1% average weight loss that the injectable version did in its phase 2 study. The key difference is time: That 13.1% weight loss came after 13 weeks of treatment compared to only 28 days for the 3.3% average weight loss achieved by the oral version.
Viking Therapeutics CEO Brian Lian said the company believes that higher doses of the oral version of VK2735 taken for longer durations could lead to greater weight loss. Investors seem to find that prospect compelling.
Is Viking Therapeutics stock a buy?
Viking now plans to advance oral VK2735 into phase 2 testing. It should soon advance the injectable formulation of the drug into late-stage testing. The company also expects to announce results from its phase 2b study of VK2809 as a treatment for nonalcoholic steatohepatitis (NASH) by mid-2024. Based on the company's strong pipeline prospects, I think this biotech stock is a buy for aggressive investors.
