The shares of US biotech Viking Therapeutics have more than doubled since trial results for its weight-loss drug beat existing treatments from Novo Nordisk & Eli Lilly.
In a mid-stage 13-week trial, Viking reported that its weight-loss medication had resulted in “statistically-significant reductions in weight”, with a 13% weight loss compared to a control.
The shares of San Diego’s Viking jumped by 121 percent to $85 each on Tuesday. Novo Nordisk shares, listed in Copenhagen, fell as much as 5% after the results. They recovered to trade at a loss of 1.7 percent. Eli Lilly shares fell by as much as 2.4% in the early US trading, before recovering their losses.
Viking reported that 88 percent of patients receiving the drug lost at least 10%, compared to just 4% in the placebo group. Viking said that weight loss did not plateau by the end of the study, suggesting further weight loss could be achieved with an extended dosing interval.
Thomas Smith, an expert at Leerink Partners, said that the late-stage trial of Eli Lilly’s drug tirzepatide showed a weight loss at all doses of less than 10%.
Smith stated that while the trial results may not be directly comparable, they were “clearly a win for Viking Therapeutics” and “above investors’ expectations”. The data appeared to “compare favorably” with Lilly’s drug.
Last year, Eli Lilly surpassed Johnson & Johnson to become the largest pharmaceutical company in the world.
Viking’s results indicate that, while competitors to Novo Nordisk are still far from bringing drugs to market in their respective sectors, the dominance of these two companies could be challenged over the next few years.
Brian Lian said that Viking would be meeting with regulators from the US Food and Drug Administration by the middle this year to determine the next steps. Lian stated that it is “more than likely” Viking will conduct a new trial to test the efficacy of its drug.
Evan Seigerman of BMO Capital Markets, an analyst, said that the FDA would require at least two additional trials before approving Viking’s weight loss drug.
The German company Boehringer Ingelheim released results on Monday showing that their weight-loss therapy delivered excellent results for patients with liver disease. This is a good example of how therapies can be used to treat obesity and related conditions.
Carinne Brouillon is the head of human pharmaceutical at Boehringer Ingelheim. She said that she expects to bring this new weight-loss medication to the market by 2027 or 2028. This will make Boehringer Ingelheim the third company to do so.
VK2735, like Novo Nordisk Wegovy or Ozempic from Viking, mimics GLP-1 hormone which can suppress appetite. VK2735 mimics the GLP-1 hormone that can suppress appetite, just like Eli Lilly’s tirzepatide.
Goldman Sachs expects the weight-loss market to reach $100 billion in value within the next decade.
AstraZeneca signed a license agreement with Chinese firm Eccogene which is developing an obesity pill. Swiss pharma group Roche purchased Carmot Therapeutics, a developer of obesity drugs, for $2.7bn back in December.