Viking Therapeutics (VKTX) reported positive early phase results for its oral weight-loss drug Tuesday, sending the stock soaring more than 25% in early trading.
Viking said its Phase 1 results, which are supposed to test the safety of the drug, showed up to 5.3% weight loss in patients after 28 days.
The pill showed no safety issues and a majority of side effects were mild — a key differentiator from current market injectable leaders Novo Nordisk (NVO) and Eli Lilly (LLY).
The results for the oral GLP-1 option, which helps slow digestion and increase insulin production resulting in weight loss, come shortly after Viking reported strong weight loss results in its injectable version — higher than current market leaders.
"We believe these data indicate that longer treatment duration, at potentially higher doses, may result in additional weight loss. We are particularly pleased with the initial safety and tolerability data, which suggest a differentiated profile with minimal gastrointestinal-related side effects," said CEO Brian Lian in a statement Tuesday.
The company will launch the drug into Phase 2 trials later this year.
Leerink Partners analysts called it a "clear win" for the company in a note to investors Tuesday. "We believe these topline data reinforce a best-in-class potential for VK2735," the note said.
Last month, the company reported its injectable version of the same drug resulted in up to 14.7% weight loss after 13 weeks of treatment in a Phase 2 trial. It has not yet announced details of the next step, a larger Phase 3 trial that would prove if the results stand up to the current market competition.
The drug is set to compete in the injectable space with Eli Lilly's Zepbound and Novo Nordisk's Wegovy. There are currently no market leaders for the oral version.
Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policy and politics. Follow Anjalee on all social media platforms @AnjKhem.
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