Overview

• Viking shares fell about 43% to just under $24 late Tuesday morning, wiping out roughly $1.8 billion in value and marking the steepest single-day drop since its 2015 IPO.
• VK2735’s phase 2 pill produced 12.2% average weight loss over 13 weeks versus 1.3% with placebo, and the company said the effect had not yet plateaued.
• About 28% of participants discontinued treatment during the 13-week study, with gastrointestinal issues the most common reason; nausea was reported by 58% and vomiting by 26%, compared with 48% and 10% on placebo.
• Analysts said the profile looks inferior to Eli Lilly’s oral orforglipron, which showed 12.4% weight loss at 72 weeks with roughly one-quarter discontinuations, and to late-stage oral Wegovy data from Novo Nordisk near 15%.
• The setback weakens Viking’s standing in the crowded obesity pill race and may lessen its M&A appeal as incumbents Lilly and Novo Nordisk consolidate their lead and other efforts like Pfizer’s earlier pill have been shelved.