Keep an eye on lesser-known obesity drug stocks, like Viking Therapeutics (VKTX).

Just days ago, Eli Lilly reported that its experimental weight loss pill helped patients lose about 11% of their body weight. However, that landed at the lower end of Wall Street’s expectations, with investors hoping it would match the effectiveness of Wegovy.

That news is a positive for stocks, like Viking Therapeutics, which is developing its own dual GLP-1/GIP receptor agonist, VK2735 in both oral and injected formulations. Even better for VKTX, its trials have been successful so far.

As noted in a VKTX press release, “Viking announced positive top-line results from the Phase 2 VENTURE study of subcutaneous VK2735 in obesity.  The VENTURE trial successfully achieved its primary and all secondary endpoints, with patients receiving VK2735 demonstrating clinically meaningful reductions in body weight compared with placebo. VK2735 also demonstrated encouraging safety and tolerability in the VENTURE study, with the majority of observed adverse events (AEs) being reported as mild or moderate.”

What makes VKTX a standout is its favorable side effect profiles, which are highly sought after.

As a result of current data and Eli Lilly news, VKTX recently jumped from about $25 to $39.70. From here, we’d like to see VKTX retest $55 near term.

Sincerely,

Ian Cooper