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Apr 21 2025
4Viking Therapeutics saw a notable boost in its share price on Monday, gaining 13% after pharmaceutical giant Pfizer announced the discontinuation of its oral obesity drug candidate, danuglipron. The decision came after trial data revealed signs of liver injury in a participant, prompting Pfizer to withdraw from further development of the asset.
Industry analysts, including those at William Blair, view Pfizer’s exit as a positive turn for Viking. They suggested that Viking may now be a more attractive acquisition target for Pfizer, which is left with only one early-stage asset in its obesity portfolio. Pfizer is expected to seek new candidates to replenish its pipeline, with particular interest in next-generation oral or injectable obesity treatments.
Viking’s lead candidate, VK2735, is currently in development as both an oral and injectable treatment for obesity. According to William Blair, VK2735 could offer Pfizer an opportunity not only to regain footing in the obesity space but also to compete with established leaders Novo Nordisk and Eli Lilly. The Phase II VENTURE trial for the oral version of VK2735 concluded enrollment of 280 participants in March, with results expected in the second half of the year. A Phase III trial for the injectable version is scheduled to begin in the second quarter of 2025.
Despite the recent stock rally to $25.20 per share, Viking faces an uphill battle to recover from prolonged losses. Its stock remains down 37% year-to-date and has declined 66% over the past six months. Contributing to the slump are increased competition—particularly from Chinese pharmaceutical firms—geopolitical tariff concerns, and waning investor enthusiasm in obesity-focused biotech stocks. Analysts note that the broader obesity drug sector has seen valuations fall between 40% and 80%.
Viking has taken steps to support future production of VK2735, entering into a manufacturing agreement with CordenPharma to produce large-scale quantities of the drug in both oral and injectable forms. While this move raised concerns about a potential acquisition—triggering a temporary 10% drop in Viking’s stock—analysts argue that securing supply chains is essential, even if acquisition talks are underway.
Elsewhere in the sector, Zealand Pharma’s shares climbed over 4% on Monday despite a 37% decline year-to-date. Zealand is developing four obesity treatments, with its most advanced candidate, survodutide, in partnership with Boehringer Ingelheim. The company also secured a $5.3 billion collaboration with Roche for another obesity candidate, petrelintide.
Other beneficiaries of Pfizer’s retreat include Structure Therapeutics, which is developing aleniglipron, a differentiated oral obesity drug. Meanwhile, drugs similar to danuglipron may face increased scrutiny. Pfizer had previously dropped a related compound, lotiglipron, in mid-2023.
Terns Pharmaceuticals is also in the mix with TERN-601, an oral GLP-1 receptor agonist. Encouragingly, its Phase I trial showed no liver enzyme changes, and a Phase II trial is planned for this year.
With Pfizer’s departure creating a gap in the oral obesity drug space, companies like Viking are now in the spotlight—either as key players or as potential takeover targets.
Source:https://www.biospace.com/business/viking-rises-as-pfizers-oral-obesity-med-falters
This is non-financial/medical advice and made using AI so could be wrong.
