Viking Therapeutics stock plunged Thursday on a relatively light earnings report that included mostly incremental updates for its highly anticipated weight-loss drugs.
Investors are closely watching the biotech company for its experimental obesity treatment, VK2735, a potential rival to shots from Novo Nordisk and Eli Lilly. The company is often pegged as a possible takeover candidate, especially for big pharmas looking to get into the obesity space.
But on the late Wednesday call, Viking didn't offer any material updates, William Blair analyst Andy Hsieh said in a report to clients.
Viking Therapeutics stock tumbled 6.1%, ending the regular session at 31.46.
Viking Therapeutics Stock: Rivaling Lilly, Novo
Viking's drug most closely resembles Eli Lilly's Zepbound. It mimics two hormones called GLP-1 and GIPR to improve feelings of satiety and markers of blood sugar. The company has said it's also considering running a study of the drug, VK2735, as a monthly shot. Lilly's Zepbound and Novo's Wegovy are weekly injections.
But Wednesday's updates were mostly incremental.
Viking is planning to run a final-phase study of VK2735 in patients with obesity and obesity with type 2 diabetes. That test is planned for the second quarter. Later this year, the company expects to run a 13-week study of the oral formulation of VK2735.
Viking Therapeutics is also planning to begin testing a next-generation drug sometime this year. That drug would mimic amylin and calcitonin. Amylin plays a role in regulating blood sugar levels and satiety, while calcitonin regulates calcium levels in the blood.
Shares Are Under Pressure
Viking Therapeutics stock topped out at 99.41 last February. Shares have since fallen more than 68% since then.
But Leerink Partners analyst Thomas Smith remained upbeat on Viking shares. He rates Viking Therapeutics stock an outperform.
"Overall, there were no surprises with the earnings update, as VKTX continues to execute across their clinical programs," he said in a report. "We continue to see fundamental and strategic value for their potentially best-in-class portfolio of obesity and metabolic disease programs."
