Viking Therapeutics Faces Renewed Pressure as Pfizer Enters Obesity Drug Race

The competitive landscape for weight-loss medications is undergoing a dramatic transformation. Viking Therapeutics, once a promising biotech contender, now confronts intensified pressure as pharmaceutical titan Pfizer makes an aggressive move into the market through a major acquisition. Investors are navigating turbulent conditions, weighing whether the company's growth narrative remains intact or if recent share price weakness presents a buying opportunity.

The primary catalyst for recent market uncertainty stems from Pfizer's strategic maneuver to acquire Metsera, a transaction that fundamentally alters the competitive environment for mid-cap biotechnology firms like Viking Therapeutics.

This substantial deal involved Pfizer committing approximately $7.0 billion upfront, with potential additional payments that could elevate the total value to around $10 billion contingent on achieving certain milestones. For Viking shareholders, this development serves as a significant competitive warning. Through this acquisition, Pfizer gains control over a portfolio of next-generation obesity treatment candidates, most notably the drug MET-097i, which is approaching Phase 3 clinical trials. This candidate directly targets the same market segment as Viking's flagship prospect, VK2735.

Key Transaction Details:
* Timing: Pfizer finalized the Metsera acquisition on November 13.
* Competitive Threat: MET-097i provides Pfizer with a Phase 3-ready candidate that directly challenges Viking's developmental pipeline.
* Market Response: Investors are reassessing Viking's independent prospects against this new competitive threat, with the company currently carrying a market valuation of approximately $4.1 billion.

Share Price Stability Tested Amid Sector-wide Valuation Compression

Trading activity on Friday provided at least a temporary respite for optimistic investors. Viking's shares managed to advance to $36.81 by the week's close, registering a daily gain of about 2.3%. However, this modest recovery fails to overshadow the broader downward trend.

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

The stock currently trades approximately 33% below its 52-week peak of $54.73. Valuation multiples across the entire obesity treatment sector have experienced noticeable compression as pharmaceutical heavyweights enter the arena. Market participants are closely monitoring whether current price levels will establish support or if continued pressure from large-cap competitors will drive shares lower.

VK2735 Development Program Carries Increased Significance

Viking's ability to withstand this heightened competition now hinges entirely on clinical execution. The company must demonstrate that its lead candidate VK2735—administered both as an injection and in oral tablet form—delivers not only efficacy but also maintains a strong safety profile.

Historical data provides some encouragement: Phase 2 trial results indicated weight reduction reaching 14.7% over a 13-week period, accompanied by favorable tolerability. This safety record constitutes the central argument for bullish investors. To effectively compete against the newly formed Pfizer-Metsera alliance and established market leaders Novo Nordisk and Eli Lilly, Viking cannot afford any missteps in its upcoming Phase 3 program.

The company stands at a critical inflection point. While current valuation still incorporates substantial expectations for its developmental pipeline, the regulatory and commercial pathway has become increasingly constrained. The coming months will determine whether Viking can sustain its position within the shadow of industry giants.