Viking Therapeutics Rebounds After Mixed Phase 2 Weight Loss Drug Results

Viking Therapeutics shares surged nearly 10% in early trading, recovering from yesterday's sharp decline following the release of phase 2 trial data for its oral weight loss drug VK2735. The biotech's stock had initially fallen due to concerns about the drug's safety profile, with a 20% discontinuation rate from adverse effects—double that of Eli Lilly's competing orforglipron in phase 3 trials.

Market analysts suggest the sell-off was overblown given Viking's earlier phase 1 results showed better tolerability and the current trial's smaller 280-patient sample size. The oral formulation's convenience advantage over injectable alternatives maintains its commercial potential, with speculation growing about potential acquisition interest from larger pharmaceutical companies.