Viking Therapeutics Stock Plummets: Here’s the Shocking Reason Why

Another biotech darling gets crushed by reality—Viking Therapeutics shares just took a brutal haircut this week.

The Clinical Setback

Trial data missed endpoints, sending investors sprinting for exits. The numbers don't lie—this wasn't a minor dip but a full-scale retreat.

Market Reaction

Institutional money pulled out faster than a degenerate trader closing leveraged positions. Retail bagholders got left holding the pieces—because when Wall Street sneezes, Main Street gets pneumonia.

Forward Outlook

Management's spinning this as a 'strategic pivot'—finance-speak for 'we're scrambling to find a new narrative.' Because nothing says confidence like blaming macro conditions while your burn rate accelerates.

Another reminder that biotech investing is just gambling with extra steps—and this week, the house won big.

What went wrong

Unfortunately, the phase 2 results were mixed. On the one hand, the body weight reductions were comparable to's phase 3 trial for orforglipron (oral), with VK2735 achieving a decrease of mean body weight of 12.2% at the highest dosage compared to a 12.4% reduction at the highest dosage for orforglipron.

However, there were tolerability issues, with 20% of patients on VK2735 dropping out due to adverse effects. This compares unfavorably to a discontinuation rate of 10.3% at the highest dosage for orforglipron. It is also at odds with the phase 1 results for VK2735 (oral), whereby "no clinically meaningful differences" were reported for adverse effects between treated patients and the placebo group.

What it means to investors

Clinical trials can yield unusual results. Purely by way of illustration, readers should note that treatment discontinuation rates due to adverse effects in the placebo group were 2.6% in the Eli Lilly phase 3, compared to 13% in the placebo group in the Viking phase 2 trial. Whether this implies something about the patient sampling in the trials is open to question.

Image source: Getty Images.

Although the results are disappointing, Viking can work on optimizing the dose and consider taking VK2735 (oral) through phase 3. Alternatively, outside of an outright bid for the company, it can partner with a larger pharmaceutical company to achieve this goal.