Viking Therapeutics Faces Pressure as Rival Obesity Drug Data Emerges

Shares of Viking Therapeutics experienced a significant decline on Monday, closing at $37.28. The catalyst for the drop was positive clinical trial results released by Structure Therapeutics for its oral GLP-1 receptor agonist, positioning it as a direct competitor to Viking's own drug candidate, VK2735.

This development raises several key considerations for investors.

Despite the market's reaction, the company's financial runway appears secure. As of early December reports, Viking holds a cash position exceeding $700 million. This substantial reserve provides ample operational flexibility leading up to its next major clinical data releases, mitigating any immediate need for dilutive financing.

For the third quarter of 2025, the biotech firm reported a net loss of approximately $90.8 million, or $0.81 per share. Such losses are characteristic of a late-stage clinical company conducting extensive registration trials.

Market analysts largely maintain a constructive outlook. The consensus recommendation in early December stands at "Strong Buy," with the average price target situated well above the current trading level of $37.28. This disparity suggests the market may be overreacting and potentially undervaluing Viking's advanced Phase 3 assets.

Should investors sell immediately? Or is it worth buying Viking Therapeutics?

Clinical Progress Continues Unabated

Amid the competitive headwinds, Viking's development timeline remains on track. The company recently achieved a critical milestone for its injectable formulation, which provides near-term valuation support.

Its pivotal Phase 3 study, known as VANQUISH-1, for the subcutaneous version of VK2735 has completed patient enrollment. Top-line results from this registration-directed trial are now awaited. Concurrently, the Phase 2 trial for the oral formulation of VK2735 is ongoing, with data expected by late 2025. These results could fundamentally reshape the competitive landscape for Viking.

Evaluating the Competitive Threat

The emergence of a strong rival introduces specific challenges:

• Market Dynamics: The obesity drug market highly covets a potent oral tablet. A second viable competitor threatens to fragment what was seen as a potential monopoly or duopoly, putting future market share at risk.
• Data Comparison: Viking has previously claimed best-in-class potential for its oral candidate. Investors are now scrutinizing how its existing data stacks up against the newly released results from Structure Therapeutics.
• Capital Rotation: Within the biotech sector, investment capital often flows swiftly toward the latest promising data. Viking, previously a dominant mid-cap player in this niche, is currently witnessing some capital outflow toward its rival.

Upcoming Catalysts Are Pivotal

Viking now enters a period of classic news-driven volatility. The share price decline stems not from any internal setback but from a competitor's progress. The coming months will prove decisive, indicating whether Viking can counterpunch with compelling Phase 3 data for its injectable therapy and competitive Phase 2 results for its oral pill. The clinical data must ultimately deliver on the promise embedded in the company's valuation.