Viking Therapeutics stock surged Thursday after the company outlined its quadruple combination in weight loss — a blow to Eli Lilly's experimental triple.
Next year, Viking expects to file a request with the Food and Drug Administration to begin testing in people a drug that mimics the activity of hormones called amylin and calcitonin. Amylin helps control blood sugar while calcitonin regulates calcium levels in the blood.
William Blair analyst Andy Hsieh noted Viking is also testing a combination of the amylin/calcitonin drug with its experimental injection, VK2735. The latter mimics the GLP-1 and GIP hormones to improve feelings of satiety and slow how fast the stomach empties.
Lilly, on the other hand, already has an approved obesity drug that targets GLP-1 and GIP called Zepbound. It's also working on a triple regimen that loops in a third hormone, called glucagon. That drug is called retatrutide or, sometimes, GGG.
"Step aside, Triple G!" Hsieh said in a note. The "potential quad combo could generate considerable interest."
Viking shares rocketed 21.3% to 73.22. Viking Therapeutics stock closed above its 50-day moving average, according to MarketSurge. Lilly stock closed down 1.3% at 891.65.
Viking Therapeutics Stock: ObesityWeek In Focus
Viking Therapeutics outlined its upcoming plans on its third-quarter conference call and ahead of the ObesityWeek meeting next month in San Antonio. There, Viking will unveil early-stage results from a study of its weight-loss pill. The company also plans to release detailed results from a midstage study of its obesity shot.
Before year-end, Viking Therapeutics plans to begin a 13-week study of its oral drug and meet with the Food and Drug Administration to discuss plans for a Phase 3 study of its under-the-skin shot.
But investors in Viking Therapeutics stock are focusing on how the company will differentiate from competitors like Lilly and Novo Nordisk. The quadruple approach to weight loss could be key here.
"Specifically, on the investor call, management indicated that pursuing both oral and subcutaneous (under-the-skin) co-formulations of the two compounds could result in a 'quad' regimen that has the potential to yield best-in-class weight loss magnitude," Hsieh said in a report.
He has an outperform rating on Viking Therapeutics stock.
Hsieh notes Viking is also testing out a monthly shot. But that will be evaluated in a future study.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
