Viking Therapeutics: Challenges and Opportunities on the Horizon

Five years ago, Viking Therapeutics was a virtually unknown clinical-stage biotechnology company. In a sea of small pharmaceutical manufacturers, it barely stood out, and many of these companies do not achieve the desired results. However, much has changed since then: Viking still does not have any products on the market, but its lead candidates have made impressive progress. This has led to a significant increase in stock values this year. The company still faces extensive work. How Viking will develop over the next five years remains an exciting question. Viking has not yet initiated any Phase 3 trials for its treatment candidates, but the two leading programs have shown promising results in mid-stage clinical trials. VK2735, a potential dual GLP-1/GIP therapy for weight loss, and VK2809, a drug for the treatment of metabolic-associated steatohepatitis (MASH), are in the spotlight. Both markets have high demand. The weight loss sector is flourishing thanks to popular drugs like Wegovy and Zepbound. Forecasts suggest that revenues could rise from the current $24 billion to $150 billion by the early 2030s. At the same time, the first therapies for MASH have recently been approved in the U.S., despite the fact that 9 million patients suffer from MASH there alone. Viking's future in the next five years could look like this: successful completion of Phase 3 trials and product launch. This could result in above-average outcomes. Another possibility is an acquisition. Many established pharmaceutical giants are interested in entering the weight loss business, and acquiring Viking could be a quick way to do so. However, this would not be an inexpensive endeavor, as Viking's market valuation is currently around $7.1 billion. Another scenario is Viking's products failing in Phase 3 trials, thus never reaching the market. Such risks are typical for clinical-stage biotech companies. Investors should therefore act cautiously: a smaller investment could be worthwhile, while a full entry carries high risks. Before investing, investors should keep in mind that Viking is not yet considered a sure bet and caution is advised. However, it might be worth keeping an eye on the company.