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Viking Therapeutics Faces Market Competition
Viking Therapeutics (NASDAQ: VKTX), a biotech company valued at approximately $3 billion, is competing in the weight loss drug market dominated by Eli Lilly and Novo Nordisk. As of August, Viking’s stock price has dropped 34% due to disappointing phase trial results for its weight loss drug candidate, VK2735, which achieved an average weight loss of 12.2% over three months in trials. However, competitor Mounjaro produced an average of 15% weight loss at lower doses over a longer period.
Market Potential and Drug Development
The weight loss drug market, currently valued at $28 billion, is projected to grow to $95 billion by 2030 according to Goldman Sachs. Viking Therapeutics is developing a dual GIP/GLP-1 receptor agonist, with VK2735 in both oral and injectable forms, currently undergoing phase 2 and phase 3 trials respectively. Despite the recent stock decline, analysts believe there is potential for significant growth if the company’s dosing strategies and drug efficacy improve.
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