Viking Therapeutics, Inc.

Novo Nordisk NVO is a dominant player in the cardiometabolic space, mainly due to the encouraging uptake of its blockbuster semaglutide-based (GLP-1) drugs — Ozempic (for type II diabetes [T2D]) and Wegovy (for obesity).
Since launch, Novo Nordisk has steadily expanded the commercial opportunity for both Ozempic and Wegovy through multiple label expansions. Together, the drugs generated DKK 63.2 billion in the first quarter of 2026, representing about 65% of NVO’s total sales. Investors will be most interested in the sales numbers for these two drugs when Novo Nordisk reports second-quarter 2026 results on Aug. 5.
Novo Nordisk has also broadened its oral semaglutide franchise. Following the FDA approval of the oral Wegovy pill to treat obesity and reduce cardiovascular risk in late December, the drug was launched in the United States in early January, offering a more convenient alternative to injections. The pill has already surpassed three million prescriptions since launch, indicating strong early uptake. Earlier this month, oral Wegovy also received approval in the EU, setting the stage for additional sales growth in the coming quarters.
Beyond obesity, Novo Nordisk is strengthening its diabetes portfolio with oral semaglutide. In May, the FDA approved oral Ozempic for adults with T2D and to reduce cardiovascular risk. The drug was subsequently launched in the United States, likely contributing to second-quarter sales, which the investors will be keen to learn. The company also continues to generate meaningful revenues from Rybelsus, its oral semaglutide therapy for T2D.
However, Novo Nordisk's weak 2026 outlook, expecting a decline in adjusted sales and operating profit, signals limited near-term momentum for its GLP-1 franchise, suggesting that second-quarter sales growth for Wegovy and Ozempic is likely to remain under pressure amid intensifying competition from arch-rival Eli Lilly LLY. Pricing pressure in the United States, weaker prescription trends for injectable GLP-1 drugs, reduced Medicaid obesity coverage and intensifying competition continue to create significant operational and executional hurdles.
Beyond its GLP-1 franchise, Novo Nordisk's insulin and Rare Disease portfolios are likely to have provided additional support to overall revenues during the period.
NVO’s Peers in the Obesity Space
Eli Lilly is Novo Nordisk’s fierce competitor in the diabetes/obesity space, which markets its tirzepatide injections, Mounjaro (T2D) and Zepbound (obesity), competing directly with NVO’s Ozempic and Wegovy injections, respectively. Mounjaro and Zepbound have become LLY’s key top-line drivers. In the first quarter of 2026, the two drugs generated a combined $12.82 billion in sales, accounting for approximately 65% of Eli Lilly’s total revenues.
Eli Lilly also secured FDA approval and subsequently launched its oral GLP-1 pill, Foundayo (orforglipron), for obesity in early April, which now competes directly with Novo Nordisk’s Wegovy pill. Investors will be most keen on learning the initial commercial performance of Foundayo when Eli Lilly reports its second-quarter results on Aug. 5 as well.
The obesity space has garnered much of the spotlight over the past year due to the sizeable and still underpenetrated market opportunity. Smaller biotech firms, like Viking Therapeutics VKTX and Structure Therapeutics GPCR, are also advancing GLP-1–based therapies to challenge the incumbents. Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed as both oral and subcutaneous formulations for the treatment of obesity. Viking Therapeutics plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026.
Structure Therapeutics’ phase II ACCESS study on its orally administered GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Structure Therapeutics expects to initiate the late-stage program of aleniglipron in obesity in the second half of 2026.
NVO’s Stock Price, Valuation & Estimates
Year to date, Novo Nordisk shares have gained 0.2% compared with the industry’s 13.1% growth. The company has also underperformed the sector and the S&P 500 during the same time frame, as seen in the chart below.
NVO Stock Underperforms the Industry, Sector & the S&P 500
Image Source: Zacks Investment Research
Novo Nordisk is trading at a discount to the industry, as seen in the chart below. Going by the price/earnings ratio, the company’s shares currently trade at 15.34 forward earnings, which is lower than 19.11 for the industry. The stock is trading much below its five-year mean of 29.25.
NVO Stock’s Valuation
Earnings estimates for 2026 have decreased from $3.46 to $3.39 per share over the past 60 days. During the same time frame, Novo Nordisk’s 2027 earnings estimates have deteriorated from $3.44 to $3.27 per share.
NVO’s Estimate Movement
Image Source: Zacks Investment Research
Novo Nordisk currently carries a Zacks Rank #5 (Strong Sell).
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How Will Ozempic and Wegovy Sales Aid NVO's Upcoming Q2 Results?

Key Points
Viking Therapeutics has a promising pipeline candidate in late-stage studies.
Positive results from ongoing phase 3 trials could send the stock soaring.
Shares of Viking Therapeutics (NASDAQ: VKTX), a clinical-stage biotech, have declined by 46% over the past two years. There are several reasons for this. First, longtime shareholders decided to pocket some profits after Viking Therapeutics reported excellent mid-stage results for its leading candidate, subcutaneous VK2735, an investigational weight-management medicine. Second, the drugmaker's phase 2 results for an oral formulation of VK2735 were somewhat disappointing due to high discontinuation rates linked to side effects.
However, Wall Street still has high hopes for Viking Therapeutics. The company's average price target of $92.58 (according to Yahoo! Finance) implies a nearly 161% upside from current levels. Why is the Street so bullish on Viking Therapeutics' prospects? Here's the bull case for the stock.
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Could Viking Therapeutics' stock more than double?
Viking Therapeutics currently has a market cap of $4.1 billion. That means Wall Street thinks it could be worth almost $11 billion within 12 months (ignoring changes to its outstanding share count). That might be a fair price for a company with a late-stage pipeline candidate that could make it a leader in the rapidly growing anti-obesity market. Viking Therapeutics has two ongoing 78-week phase 3 studies for subcutaneous VK2735, including one that enrolled overweight and obese patients who are diabetic.
The company's shares may soar if it can post excellent results from these clinical trials. The market will expect VK2735 to show a mean weight loss at least in the high teens in patients without diabetes. That may sound like a high bar, considering Zepbound, the current GLP-1 weight loss leader, posted an average weight loss of about 20.2% over 72 weeks in one phase 3 study.
However, the landscape will change significantly over the next year, with more mid and late-stage candidates posting results. It will become harder for Viking Therapeutics to impress investors, and anything substantially below a mean weight loss in the high teens probably won't cut it. The good news is that in a mid-stage study, subcutaneous VK2735 posted a placebo-adjusted mean weight loss of up to 13.1% in just 13 weeks of treatment.
It could perform significantly better in 78-week late-stage studies, perhaps even reaching an average weight loss of 25% (which isn't a stretch considering its phase 2 results), in which case, the stock will likely soar. And that's before we factor in the potential progress it could make with its oral candidate, which might move the needle as well. These wins should allow the stock to meet The Street's estimates, although perhaps not in the next 12 months -- but likely over the next two years. Does that make Viking Therapeutics' stock a buy? Hardly.
Even with the excellent mid-stage results it posted with subcutaneous VK2735, it's very possible that the medicine's efficacy will fall well short of expectations, or that it will come with too many side effects to make meaningful commercial progress. In either case, the stock will fall off a cliff. In short, Viking Therapeutics is risky, and only those comfortable with that should consider this biotech stock.
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Wall Street Says Buy the Dip in Viking Therapeutics. Here's the Bull Case

Eli Lilly LLY announced positive top-line data from two late-stage studies evaluating its next-generation, experimental triple-acting incretin, retatrutide, in patients with obesity or those who are overweight as well as some of its most serious complications – type II diabetes and established cardiovascular disease.
The phase III TRIUMPH-2 study is under a basket design evaluating the safety and efficacy of once weekly retatrutide versus placebo in participants with type II diabetes and obesity or those who are overweight. Patients in the study were randomized in a 1:1:1:1 ratio to receive retatrutide (4 mg, 9 mg, 12 mg) or placebo over a period of 80 weeks.
Meanwhile, the phase III TRIUMPH-3 study is evaluating the safety and efficacy of once-weekly retatrutide versus placebo in participants with severe obesity and established cardiovascular disease. Patients in this study were randomized in a 1:1:2 ratio to receive retatrutide 9 mg, 12 mg, or placebo over a period of 80 weeks.
Year to date, Lilly’s shares have risen 10.7% compared with the industry’s 11.8% rally.
Image Source: Zacks Investment Research
LLY’s Retatrutide Scores Big in Latest Obesity Studies
Data from the TRIUMPH-2 study showed that treatment with all doses of retatrutide (4 mg, 9 mg, 12 mg) led to substantial weight loss and improved glycemic control at 80 weeks in adults with type II diabetes and obesity or overweight. Treatment with retatrutide 4 mg, 9 mg, and 12 mg led to an average weight loss of 29.8 lbs (12.7%), 45.4 lbs (19.1%), and 49.6 lbs (20.8%), respectively, in the given patient population, at 80 weeks.
Data from the TRIUMPH-3 study showed that treatment with retatrutide (9 mg, 12 mg) led to an average weight loss of up to 55.8 lbs (22.6%) at 80 weeks in patients with severe obesity and established cardiovascular disease.
Importantly, treatment with retatrutide meaningfully reduced certain cardiovascular risk factors, with the highest dose (12mg) delivering average reductions of 37% in triglycerides, 16.5% in non-HDL cholesterol, 9.3 mmHg in systolic blood pressure, 7.5 in (19.0 cm) in waist circumference, and 51.2% in high-sensitivity C-reactive protein (hsCRP) in the TRIUMPH-3 study.
LLY’s Previous Phase III Wins With Retatrutide
We remind investors that the success of the phase III TRIUMPH-2 and TRIUMPH-3 obesity studies marks the fourth and fifth positive phase III data readout for Eli Lilly’s retatrutide.
In May 2026, Lilly announced that the phase III TRIUMPH-1 study, which evaluated the efficacy and safety of three doses (4 mg, 9 mg and 12 mg) of retatrutide for 80 weeks against placebo in adults with obesity or overweight, met its primary endpoint.
In March 2026, Eli Lilly reported that the late-stage TRANSCEND-T2D-1 study of once-weekly retatrutide in adults with T2D and inadequate glycemic control met its primary endpoint.
In late 2025, Eli Lilly reported meeting all primary and key secondary endpoints in the late-stage TRIUMPH-4 study, which evaluated the candidate in adults with obesity or overweight and knee osteoarthritis, without diabetes.
Retatrutide is being evaluated in several phase III studies for obesity and overweight with at least one weight-related medical problem, T2D, knee osteoarthritis pain, moderate-to-severe obstructive sleep apnea (OSA), chronic low back pain, cardiovascular and renal outcomes and metabolic dysfunction-associated steatotic liver disease.
Importantly, with the latest results from the TRIUMPH-2 and TRIUMPH-3 studies, Lilly now has the data package that will support global regulatory filings for retatrutide as a potential treatment for obesity, knee osteoarthritis pain and OSA.
The company plans to submit a biologics license application for retatrutide to the FDA in the first quarter of 2027. However, the timeline seems a little delayed from the prior expectation of filing retatrutide for obesity and knee osteoarthritis pain in 2026. If approved, retatrutide could become another multibillion-dollar product.
Retatrutide represents a new generation of “triple-action” therapy targeting three biological pathways — GLP-1, GIP and glucagon — potentially offering greater weight-loss and metabolic benefits than existing medicines, which mostly act on one or two biological pathways. LLY’s approved obesity drug Zepbound targets GLP-1 and GIP, while Novo Nordisk’s NVO blockbuster obesity drug Wegovy activates only GLP-1.
LLY’s Competition in the Obesity Space
Eli Lilly and Novo Nordisk presently dominate the obesity market.
Novo Nordisk gained approval for an oral version of its obesity drug, Wegovy, in December 2025 and launched the pill in January 2026. In early April 2026, Lilly gained FDA approval for its once-daily oral GLP-1 pill Foundayo (orforglipron) for treating obesity.
Smaller biotech firms, like Viking Therapeutics VKTX and Structure Therapeutics GPCR, are also advancing GLP-1–based therapies to challenge the incumbents. Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed as both oral and subcutaneous formulations for the treatment of obesity. Viking Therapeutics plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026.
Structure Therapeutics’ phase II ACCESS study on its orally administered GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Structure Therapeutics expects to initiate the late-stage program of aleniglipron in obesity in the second half of 2026.
LLY’s Zacks Rank
Eli Lilly currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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LLY's Retatrutide Nears 2027 Filing With Two More Phase III Wins

Novo Nordisk NVO has filed a lawsuit against Eli Lilly LLY, accusing its rival of misleading high-profile U.S. advertising campaigns to promote its blockbuster injectable GLP-1 medicines, Zepbound and Mounjaro, over NVO’s injectable semaglutide medicines, Wegovy and Ozempic for obesity and type II diabetes (T2D), respectively.
The legal challenge comes at a pivotal time as the global obesity market has emerged as one of the pharmaceutical industry's most fiercely contested arenas. While the dispute centers on comparative advertising, it carries broader strategic significance, highlighting the intensifying battle between the two GLP-1 leaders, where physician and patient perceptions can be as critical as clinical efficacy in shaping prescribing decisions and market share.
NVO Challenges LLY’s Comparative GLP-1 Advertising Claims
Earlier this week, Novo Nordisk filed a lawsuit against Eli Lilly in a U.S. federal court, alleging that the company's nationwide direct-to-consumer advertising campaigns for Zepbound and Mounjaro are misleading because they rely on outdated clinical comparisons while omitting newer evidence supporting higher-dose Wegovy.
The dispute centers on Lilly's advertisements highlighting results from the SURMOUNT-5 head-to-head study, where Zepbound achieved an average weight loss of 20.2% compared with 13.7% for Wegovy after 72 weeks. Those findings compared Zepbound's highest doses with Wegovy's then-approved maximum dose of 2.4 mg and were scientifically valid when generated.
Year to date, Novo Nordisk shares have lost 2.9% against the industry’s 8.9% growth.
Image Source: Zacks Investment Research
However, the competitive landscape changed in March 2026 when the FDA approved Wegovy 7.2 mg, a higher-dose formulation that demonstrated approximately 19% (~47 pounds) average weight loss in the STEP UP study. Novo Nordisk argues that Lilly's continued use of earlier comparisons creates the misleading impression that Zepbound is categorically more effective, despite the availability of a newer FDA-approved dose that substantially narrows the efficacy gap.
NVO also alleges that Lilly's Mounjaro advertisements compare the drug's highest approved 15 mg dose with only the 1 mg maintenance dose of Ozempic, while omitting the FDA-approved 2 mg dose, which has been available for more than four years and offers greater efficacy. The lawsuit follows LLY’s refusal to withdraw or substantially revise the advertisements despite receiving a formal cease-and-desist notice from Novo Nordisk. The company is seeking a permanent injunction requiring LLY to withdraw the advertisements and launch corrective marketing.
A Fight Over Perception Could be Just as Important as Efficacy
Novo Nordisk’s lawsuit appears to be less about challenging the original SURMOUNT-5 data than about redefining the narrative in an increasingly competitive obesity market. Lilly has built considerable commercial momentum by positioning Zepbound as the most effective weight-loss therapy available, a perception reinforced through broad consumer advertising.
If the court ultimately prevents Lilly from continuing to make superiority claims based on comparisons that exclude Wegovy's latest approved dose, Novo Nordisk could gain an important strategic advantage. While the efficacy gap may not disappear entirely, restricting these advertisements could weaken one of LLY’s strongest commercial messages and help NVO reshape physician and patient perceptions around Wegovy's competitiveness.
Even so, investors should recognize that any legal victory would likely offer only a partial competitive benefit. Lilly possesses enormous marketing resources and would almost certainly redesign its advertising strategy to comply with any court ruling while continuing to emphasize other differentiating features of its portfolio. The broader competition will still be determined by clinical outcomes, product launches, pricing, reimbursement and manufacturing capacity rather than advertising alone.
Novo Nordisk A/S Price and Consensus
NVO Signals It Is Ready to Defend Its GLP-1 Franchise
Novo Nordisk has indicated that it intends to seek a preliminary injunction in the coming days if Eli Lilly does not voluntarily withdraw the advertisements. That move underscores the urgency with which the company views protecting Wegovy's market position as competition intensifies.
The lawsuit highlights that Novo Nordisk is prepared to defend its obesity franchise not only through product innovation but also through legal and commercial channels. While the outcome is unlikely to alter the long-term competitive dynamics by itself, a favorable ruling could help narrow the perception gap that has increasingly favored Zepbound, as both companies continue battling for leadership in one of healthcare's fastest-growing markets.
NVO Faces Rising Competitive Pressure Beyond LLY in GLP-1s
The immense market opportunity in obesity treatments is also attracting smaller biotech firms, like Viking Therapeutics VKTX and Structure Therapeutics GPCR, which are advancing their GLP-1–based therapies to challenge the incumbents. Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed as both oral and subcutaneous formulations for the treatment of obesity. Viking Therapeutics plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026.
Structure Therapeutics’ phase II ACCESS study on its orally administered GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Structure Therapeutics expects to initiate the late-stage program of aleniglipron in obesity in the second half of 2026.
NVO’s Zacks Rank & Stocks to Consider
Novo Nordisk currently carries a Zacks Rank #5 (Strong Sell).
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Novo Nordisk A/S (NVO) : Free Stock Analysis Report
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NVO Challenges LLY Ads in GLP-1 Battle: Why the Lawsuit Matters Now

Novo Nordisk NVO received a meaningful commercial boost last week after the European Commission approved the oral version of Wegovy (semaglutide 25 mg) for adults with obesity and at least one weight-related comorbidity. The approval expands the company's obesity franchise across Europe, making Wegovy the first GLP-1 tablet approved for weight management in the EU and marking its fifth regulatory authorization after the United States, the United Kingdom, the United Arab Emirates and Bahrain. While the decision strengthens Novo Nordisk's long-term growth narrative, investors should view it as an incremental positive rather than a game-changing development.
The approval broadens Wegovy's commercial opportunity by offering a convenient oral alternative to injectable therapies, potentially attracting patients hesitant to start injections. It also reinforces Novo Nordisk's strategy of extending the semaglutide franchise beyond injectables and should support prescription growth across Europe over time.
However, the competitive backdrop remains far more challenging. Eli Lilly LLY has rapidly emerged as Novo Nordisk's strongest rival, with Zepbound (tirzepatide) steadily gaining traction in injectables and Foundayo (orforglipron) expanding its presence in the oral obesity market. Investor confidence in Lilly's execution remains exceptionally strong, as reflected in the stock's record highs and a market capitalization exceeding $1 trillion.
Novo Nordisk's oral strategy is off to a solid start. The Wegovy pill has already surpassed three million U.S. prescriptions in just over five months of launch, suggesting robust physician adoption. Yet maintaining that momentum may prove increasingly difficult. Lilly's Foundayo offers a simpler once-daily dosing regimen without food or drink restrictions, a convenience advantage that could support long-term adherence. At the same time, Wegovy may benefit from a relatively lower burden of gastrointestinal side effects, meaning prescribing decisions are likely to depend on the overall clinical profile rather than convenience alone.
The recent launch of the Medicare GLP-1 Bridge program further highlights the shifting competitive dynamics. By expanding affordability for eligible beneficiaries, the program should increase the overall size of the obesity market. However, because both Wegovy and Lilly's obesity portfolio receive the same reimbursement support, the initiative does little to alter the competitive balance. Instead, market share gains will increasingly depend on product differentiation, physician preference and long-term clinical outcomes.
Overall, the EU approval is undoubtedly a positive development for Novo Nordisk and reinforces the long-term commercial potential of the Wegovy franchise. Nevertheless, the company is still far from being out of the woods. U.S. pricing pressure, softer injectable prescription trends and intensifying competition from Lilly continue to weigh on the investment story. While the latest approval adds another growth catalyst, investors should watch execution and market-share trends closely, as they are likely to remain the key drivers of Novo Nordisk's performance going forward.
NVO Faces Rising Competitive Pressure Beyond LLY in GLP-1s
While Novo Nordisk and Eli Lilly remain the two dominant players in the fast-growing obesity market, smaller biotech firms, like Viking Therapeutics VKTX and Structure Therapeutics GPCR, are also advancing GLP-1–based therapies to challenge the incumbents. Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed as both oral and subcutaneous formulations for the treatment of obesity. Viking Therapeutics plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026.
Structure Therapeutics’ phase II ACCESS study on its orally administered GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Structure Therapeutics expects to initiate the late-stage program of aleniglipron in obesity in the second half of 2026.
NVO’s Stock Price, Valuation & Estimates
Year to date, Novo Nordisk shares have lost 1.1% against the industry’s 11.1% growth. The company has also underperformed the sector and the S&P 500 during the same time frame, as seen in the chart below.
NVO Stock Underperforms the Industry, Sector & the S&P 500
Image Source: Zacks Investment Research
Novo Nordisk is trading at a discount to the industry, as seen in the chart below. Going by the price/earnings ratio, the company’s shares currently trade at 15.14 forward earnings, which is lower than 18.88 for the industry. The stock is trading much below its five-year mean of 29.25.
NVO Stock’s Valuation
Earnings estimates for 2026 have decreased from $3.47 to $3.38 per share over the past 60 days. During the same time frame, Novo Nordisk’s 2027 earnings estimates have deteriorated from $3.45 to $3.28 per share.
NVO’s Estimate Movement
Image Source: Zacks Investment Research
Novo Nordisk currently carries a Zacks Rank #5 (Strong Sell).
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Does EU Approval of Wegovy Pill Change NVO's Competitive Story?

Key Points
Viking Therapeutics just launched its next-gen weight loss program.
Novo Nordisk and Eli Lilly are already deep into the development process with comparable programs.
Viking's candidate is thus going to need to produce some stellar data to be competitive.
The human appetite has more than one off switch, and drugmakers like Eli Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO) are doing their darndest to identify and develop a medicine to target every single one.
On June 24, Viking Therapeutics (NASDAQ: VKTX) announced a phase 1 trial for one of its candidates that's attempting to flip one of those as-yet unmedicated appetite switches. That marks its first obesity candidate working outside the incretin pathway that includes GLP-1, or glucagon-like peptide-1, the hormone behind Ozempic and Wegovy and one of two hormones behind Zepbound and Mounjaro.
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Let's take a look at this program and determine whether it's really going to be a threat to Novo Nordisk and Eli Lilly.
This hormone is already a hot target
Amylin is a hormone produced in the pancreas that is released with insulin after a meal, activating receptors in the brain stem that promote the feeling of fullness, and also slowing stomach emptying. That pathway is adjacent to the one that the GLP-1 medicines use, so it could technically be targeted by a combination therapy affecting both.
VK3019, Viking's new candidate, is a dual amylin and calcitonin receptor agonist. Additionally targeting calcitonin activation is meant to yield metabolic effects amylin alone does not; preclinical animal model data showed that the combination led to up to 8% weight reduction against controls.
The new phase 1 trial, announced on June 24, is being conducted in adults with a body mass index of 30 or above, and the candidate is formulated as an injection. If Viking's dual targets work as desired, the company could be on the way to producing a leading next-generation weight loss candidate -- but its bigger competitors are way ahead of it.
Eli Lilly reported phase 2 results for eloralintide, an amylin receptor agonist, in November 2025; across dosing arms, patients experienced mean weight reductions of 9.5% to 20.1% after 48 weeks, against a loss of 0.4% with placebo. Phase 3 is already in progress.
Novo Nordisk has gone even further. Its candidate cagrilintide produced 11.8% weight loss against 2.3% for placebo over a 68-week period; its phase 3 program began in late 2025. A combination drug program called CagriSema, which contains cagrilintide plus semaglutide (the active ingredient of Ozempic and Wegovy), was submitted to the U.S. Food and Drug Administration (FDA) in December, with review expected this year.
The combination approach is popular, too
So Viking Therapeutics won't be the first to market with its amylin program, even if its clinical trials go swimmingly.
But Viking already owns VK2735, a dual agonist of the GLP-1 and glucose-dependent insulinotropic polypeptide (GIP) receptors that's in phase 3 trials. Pairing it with an amylin candidate like VK3019 could deliver the results that would keep the company relevant in the next round of the competition in weight loss drugs. And, as a pre-revenue biotech, it wouldn't even need to win that much of the market for its shares to see meaningful gains.
The catch is that Lilly is already running that exact play. A phase 1 study of eloralintide administered with tirzepatide (Mounjaro, Zepbound) has completed, and a phase 3 trial adding eloralintide to a weekly incretin is enrolling now. Viking is thus trying to assemble what both incumbents built years ago.
That means VK3019 is going to need to be substantially more effective or more pleasant to take if the biotech is going to secure a large share of the market. It's certainly possible -- but it's very risky to bet on it.
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Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly and Novo Nordisk. The Motley Fool recommends Viking Therapeutics. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Watch Out, Eli Lilly and Novo Nordisk: Viking Therapeutics Just Started Testing a Weight Loss Drug That Goes Beyond GLP-1

Key Points
The key trial results for VK2735 are still years away.
There are some useful indicative results coming from a phase 1 maintenance trial over the next six or so months.
VK2735 demonstrated the potential to generate relatively swift weight loss in phase 2 trials.
Following an excellent run in June, when the stock rose by more than 19%, Viking Therapeutics (NASDAQ: VKTX) stock recently dipped, potentially creating a buying opportunity for an exciting growth stock with huge potential in the weight-loss drug sector. Is the dip enough to make the stock a buy?
Wall Street loves Viking Therapeutics
According to Visible Alpha, the Wall Street consensus price target for the stock is just below $91, representing a potential 150% return from the current price. The analyst's excitement about the stock stems from its lead drug candidate, VK2735, and its potential in the highly lucrative weight-loss market.
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VK2735 is being developed as a dual formulation therapy, whereby, for example, it can be initially taken by injection (subcutaneously) and later in oral form as a maintenance dose or to continue weight loss. Investors are also hoping the promising efficacy data (VK2735 appears to have a steeper velocity of weight loss than rival drugs) from the phase 2 trials (oral and subcutaneous) will be repeated in phase 3 trials. The subcutaneous phase 3 trial is in progress, while the oral phase 3 trial will begin in the fourth quarter of this year.
Is it a stock to buy?
VK2735 is a potential game changer for the company, but risks remain, not least due to some questionable tolerability data from the phase 2 oral trial. Moreover, the phase 3 results from the subcutaneous VK2735 trial won't be available until late 2027 at the earliest, and the oral 2735 phase 3 results aren't due until 2028.
That said, there is a phase 1 maintenance dosing trial (participants will take subcutaneous VK2735 for 19 weeks before switching to a range of subcutaneous and oral maintenance doses) in progress, with results from the subcutaneous period due in the current quarter and the oral maintenance results due in the first half of 2027.
Wall Street says "buy," but cautious investors may want to wait to monitor the maintenance trial results before buying in, as the phase 3 results won't come out for a while.
Should you buy stock in Viking Therapeutics right now?
Before you buy stock in Viking Therapeutics, consider this:
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Viking Therapeutics. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy Viking Therapeutics Stock on the Dip? Wall Street Is Screaming "Yes."

Key Points
Demand for GLP-1 therapies is on the rise.
That could be a tailwind for Viking Therapeutics as it develops several drugs in this area.
The biotech looks like a high-risk, high-reward play.
Over the past five years, Viking Therapeutics' (NASDAQ: VKTX) shares have climbed more than 500% as the company has made significant progress with its leading pipeline candidates. The clinical-stage biotech is looking to establish itself in the fast-growing GLP-1 drug market. If it can make headway toward that goal through the end of the decade, Viking Therapeutics might once again deliver market-beating returns. Here is why the stock could double by 2030.
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A large and growing opportunity
Demand for GLP-1 products is soaring. Thanks to breakthroughs in the field and a large addressable opportunity in niches such as diabetes and weight management, the market for GLP-1 drugs could reach $190 billion by 2035, according to some estimates. For context, it was worth about $79 billion last year. While Eli Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO) currently dominate this area, a first-mover advantage isn't everything. There is room for more differentiated GLP-1 medicines.
That's what Viking Therapeutics is working on. The company's pipeline includes subcutaneous VK2735, an investigational medicine currently in phase 3 clinical trials. The biotech company is also working on an oral version of VK2735 that could start late-stage clinical trials by the end of the year. Further, Viking Therapeutics said it would start phase 1 studies for another product, VK3019, in the second quarter.
While VK2735 mimics the actions of the GLP-1 and GIP hormones, VK3019 is a dual amylin and calcitonin agonist. This differentiated product could help Viking Therapeutics maintain a strong position in the weight-loss market as more GLP-1 medicines gain approval. The biotech could also seek to combine VK2735 and VK3019, thereby attacking obesity from multiple pathways, potentially yielding efficacy far stronger than current options.
The bull case for Viking Therapeutics
What would it take for Viking Therapeutics to double by 2030? The biggest catalyst will be progress with its leading candidate, subcutaneous VK2735. The medicine's ongoing phase 3 studies should be completed within the next 12 to 18 months -- and, if the results from these trials are strong, the therapy could earn approval by mid to late 2028 or so. However, clinical successes don't necessarily translate to the kind of commercial success investors want. The best-case scenario for Viking Therapeutics is for VK2735 to post phase 3 results that at least rival those of the current leader in the obesity drug market, Zepbound.
That would likely send the stock price soaring, as it would set Viking Therapeutics on a trajectory to generate billions in annual sales from its leading product. Progress with oral VK2735 through the next few years will also be important. Oral weight-loss medicines are expanding the market by attracting mostly patients who had never taken GLP-1s before. But their efficacy pales in comparison with that of subcutaneous medicines. Oral VK2735 posted highly impressive weight-loss numbers in a phase 2 study, but the study had high discontinuation rates due to the medicine's side effects.
If Viking Therapeutics can find a way to mitigate oral VK2735's side effects -- perhaps with a gentler titration schedule -- while maintaining its strong efficacy, that could be a game changer for the company. Lastly, encouraging early stage results for VK3019 may also slightly move the needle for Viking Therapeutics.
Hedge your bets
Could Viking Therapeutics really double by 2030? Yes, provided everything goes right. But how likely is that? In my view, there is a good chance subcutaneous VK2735 posts strong phase 3 results, but if it fails to do so, the stock will fall off a cliff. It will likely struggle to recover, especially since the company is currently valued at $4.4 billion, which isn't at all insignificant for a clinical-stage biotech. There is also the possibility that the GLP-1 market will not grow as quickly as some analysts currently project, or that there will be far more competition from pharmaceutical giants than expected.
Any of these outcomes could lead to much higher expectations for Viking Therapeutics' upcoming data readouts and make it harder for the company to impress the market. The bottom line is that Viking Therapeutics is on the risky side. Investors comfortable with volatility may add a small position in the stock to a well-diversified portfolio, but risk-averse investors will want to look elsewhere.
Should you buy stock in Viking Therapeutics right now?
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Prosper Junior Bakiny has positions in Eli Lilly, Novo Nordisk, and Viking Therapeutics. The Motley Fool has positions in and recommends Eli Lilly and Novo Nordisk. The Motley Fool recommends Viking Therapeutics. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This GLP-1 Stock Could Double by 2030. Here's Why

Key Points
Lilly's business is booming.
However, there is a bear case against the pharma stock.
One smart strategy could be to gradually build a position in Lilly.
Eli Lilly (NYSE: LLY) is in a league of its own. It's the largest healthcare company in the world by market cap, with the No. 2 company (Johnson & Johnson (NYSE: JNJ)) barely over half as big. Lilly's shares have more than quintupled in value over the last five years.
But should you buy Eli Lilly stock now? Here's my honest take.
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Business is booming
Make no mistake about it: Lilly's business is booming. The company's revenue soared 56% year over year in the first quarter of 2026 to $19.8 billion. Its adjusted earnings per share skyrocketed 156%.
Much of this growth is due to Lilly's GLP-1 franchise. Sales for Mounjaro, which is marketed in the U.S. for treating type 2 diabetes (T2D) and for both T2D and weight loss outside the U.S., jumped 125% year over year to $8.7 billion. Sales for Zepbound, the drug's U.S. brand for weight loss, increased 80% to nearly $4.2 billion.
Those numbers are so staggering that they make it easy to overlook Lilly's other success stories. For example, sales for eczema drug Ebglyss vaulted 141% higher in Q1 to $145 million. Another autoimmune disease drug, Omvoh, generated more than twice the sales in the latest quarter ($80 million) than it did in the prior year period. Blood cancer therapy Jaypirca's sales increased 79% year over year to $165 million.
Lilly recently won U.S. regulatory approval for its new GLP-1 pill, Foundayo. Analysts expect the drug to rake in full-year sales of around $1.6 billion. RBC Capital projects peak annual sales of a whopping $36 billion.
More good news could be on the way. Lilly's pipeline features 42 programs in late-stage clinical studies. The big drugmaker's buying spree, with the acquisitions of Ajax Therapeutics, Centessa Pharmaceuticals, 4E Therapeutics, and Kelonia Therapeutics, is further bolstering its pipeline.
The bear case against Lilly
Given all those positives, it might seem like buying Lilly's shares would be a no-brainer. However, there is a bear case against Lilly that investors shouldn't ignore.
Valuation stands at the top of the list. The big pharma stock trades at 33.4 times forward earnings. Its price-to-earnings-to-growth (PEG) ratio, which factors in analysts' earnings growth projections over the next five years, is 1.57. While that isn't a ridiculously high ratio, it suggests Lilly is still priced at a premium despite its robust growth prospects.
Another issue is that Lilly's fortunes hinge significantly on its GLP-1 drugs -- and competition is intensifying. Novo Nordisk (NYSE: NVO) has a new oral version of its weight-loss drug, Wegovy, on the market. The company's CagriSema, which is in late-stage testing, could challenge Lilly's Zepbound. Amgen (NASDAQ: AMGN), Pfizer (NYSE: PFE), Roche (OTC: RHHBY), and Viking Therapeutics (NASDAQ: VKTX) also all have promising weight-loss therapies in development.
In the meantime, Lilly has been forced to slash Mounjaro prices in China. The company cut prices to secure inclusion in China's state-run health insurance program. Speaking of China, the U.S. House of Representatives Select Committee on China is investigating Lilly's clinical drug trials in the country. In particular, the committee is concerned about Lilly's efforts involving Chinese military hospitals and in the Xinjiang region, where the Chinese Communist Party is accused of conducting a genocide of Uyghur Muslims.
To buy or not to buy?
So, should you buy Eli Lilly stock? I have a nuanced answer.
Lilly is, without question, one of the world's best pharmaceutical companies. It's a leader in multiple markets, notably the weight-loss market, which could reach $150 billion by 2035. Despite its premium valuation and other risks, I think that this stock is a good pick for long-term investors.
However, I suspect Lilly's share price could pull back further, creating an even better buying opportunity. That's what has happened several times in the past when the stock hit a record high.
I could be wrong, though. Perhaps the best approach is to buy a partial position in Lily and add to it later (perhaps after the company reports its second-quarter results on July 30, 2026). With a long-term growth trajectory like Lilly's, easing into a full stake could be a profitable strategy.
Should you buy stock in Eli Lilly right now?
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Keith Speights has positions in Pfizer. The Motley Fool has positions in and recommends Amgen, Eli Lilly, Novo Nordisk, and Pfizer. The Motley Fool recommends Johnson & Johnson, Roche Holding AG, and Viking Therapeutics. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy Eli Lilly Stock? Here's My Honest Take.

Novo Nordisk NVO shares have rallied 11.2% over a month as investors regained confidence in the company's obesity growth story following a series of favorable regulatory, commercial and strategic developments.
A major catalyst was the United Kingdom becoming the first country in Europe to approve the daily Wegovy pill (oral semaglutide 25 mg) for obesity, marking its third global authorization after the United States and the UAE. The approval strengthens Novo Nordisk's leadership in oral GLP-1 therapies while expanding its addressable patient population. NVO expects the approval and launch of the Wegovy pill in other select markets in the second half of 2026.
Momentum strengthened further with the launch of the Medicare GLP-1 Bridge program on July 1, allowing eligible Medicare beneficiaries to access both the Wegovy injection and pill for a $50 monthly copay through 2027. The program significantly expands patient access and follows strong market traction for the Wegovy pill, which surpassed three million U.S. prescriptions in just over five months since its January 2026 launch. Investor confidence also benefited from the Novo Nordisk Foundation's EUR 60.2 million CardioMetabolic Bridge initiative, which aims to accelerate next-generation therapies for obesity, diabetes and cardiovascular disease.
However, NVO continues to face significant challenges. Medicare Bridge also provides identical reimbursement for its rival Eli Lilly's LLY GLP-1 therapies, Zepbound injection and Foundayo pill, for obesity, eliminating any meaningful coverage advantage for Wegovy. Competition is therefore shifting toward clinical differentiation, where Lilly gained momentum with Zepbound's superior weight-loss efficacy in head-to-head studies and Foundayo's more convenient once-daily oral dosing. Although Wegovy retains an important edge as the only obesity therapy approved to reduce the risk of major adverse cardiovascular events, NVO will need to increasingly rely on its broader clinical profile and long-term outcomes to defend market share.
Beyond competitive pressures, Novo Nordisk continues to contend with U.S. pricing pressure, softer injectable GLP-1 prescription trends, reduced Medicaid obesity coverage, the proposed "Most Favored Nation" pricing framework, gradual semaglutide exclusivity erosion and elevated investments in R&D, manufacturing and commercialization. Although management raised guidance after first-quarter results, it still expects declines in both sales and operating profit in 2026, highlighting continued pressure on the core business. Let's delve deeper to better understand NVO's key strengths against its near-term challenges.
Semaglutide — Still NVO’s Primary Top-Line Driver
Novo Nordisk’s growth continues to be driven by its semaglutide franchise — Ozempic [type II diabetes (T2D) injection], Wegovy and Rybelsus (oral pill for T2D) — which forms the backbone of one of the industry’s broadest diabetes and obesity portfolios. Ozempic and Wegovy remain the company’s key revenue generators, while expanded distribution agreements with major U.S. pharmacies, telehealth providers and other platforms have improved access to authentic FDA-approved Wegovy and largely addressed the compounded-drug challenge.
The company is broadening semaglutide’s commercial opportunity through multiple label expansions. Wegovy is now approved not only for obesity but also for reducing major cardiovascular events, improving HFpEF symptoms and easing obesity-related knee pain from osteoarthritis. Novo Nordisk has also secured approvals for higher-dose Wegovy injections in the United States and Europe.
Novo Nordisk is also strengthening its diabetes franchise. Ozempic remains the only GLP-1 approved to slow kidney disease progression and reduce cardiovascular death in T2D patients, while additional label expansions are being pursued in peripheral artery disease. Rybelsus has been approved for cardiovascular-risk reduction in T2D patients in the United States and Europe, and the company recently launched oral Ozempic for adults with T2D. Positive late-stage data in pediatric T2D and planned label-expansion filings for both Rybelsus and oral Ozempic could further expand the reach of its oral GLP-1 portfolio.
NVO’s Competition Heating Up in the Obesity Space
Competition in obesity treatment is intensifying as Eli Lilly has emerged as Novo Nordisk’s biggest rival. Lilly now competes in both injectable and oral obesity therapies with Zepbound and the recently launched oral GLP-1 drug, Foundayo. LLY has further strengthened its position by securing broader reimbursement support from major U.S. pharmacy benefit managers, including CVS Caremark, which should improve patient access and support prescription growth.
The obesity space has drawn much of the spotlight over the past year because of the sizeable and still underpenetrated market opportunity. Smaller biotech firms, such as Viking Therapeutics VKTX and Structure Therapeutics GPCR, are also advancing GLP-1–based therapies to challenge the incumbents. Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed as both oral and subcutaneous formulations for the treatment of obesity. Viking Therapeutics plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026.
Structure Therapeutics’ phase II ACCESS study on its orally administered GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Structure Therapeutics expects to initiate the late-stage program of aleniglipron in obesity in the second half of 2026.
NVO Expands Footprint in Rare Diseases and Liver Care
Beyond its GLP-1 portfolio, Novo Nordisk is broadening its presence in rare diseases. The company has submitted a regulatory filing seeking approval for Mim8 in hemophilia A in the United States. NVO has also secured both EU and U.S. approvals for Alhemo to treat hemophilia A and B, with or without inhibitors.
The FDA has also granted accelerated approval to Wegovy as the first GLP-1 therapy to treat noncirrhotic metabolic dysfunction-associated steatohepatitis with moderate-to-advanced liver fibrosis. This marked a significant milestone in liver care by offering patients a treatment that can both halt disease activity and reverse liver damage.
NVO Focuses on Next-Generation Drugs
Novo Nordisk is also developing several next-generation obesity candidates in its pipeline, especially targeting the lucrative U.S. market. NVO has submitted a regulatory filing seeking the approval of CagriSema injection, a follow-up drug to Wegovy, for obesity. It is also gearing up to launch a dedicated late-stage program evaluating cagrilintide as a monotherapy for obesity.
Meanwhile, Novo Nordisk’s mid-stage asset, amycretin, has shown strong weight-loss efficacy in a phase II study and is slated to enter phase III soon. The company has bolstered its pipeline through several major collaborations and acquisition deals.
NVO also received FDA approval for Awiqli, the first once-weekly long-acting basal insulin (icodec) for adults with T2D, to be used alongside diet and exercise for glycemic control. Already approved in several global markets, the drug’s U.S. clearance further strengthens its diabetes portfolio and reinforces its position in the treatment landscape.
NVO’s Stock Price, Valuation & Estimates
Year to date, Novo Nordisk shares have lost 3.9% against the industry’s 12.5% growth. The company has also underperformed the sector and the S&P 500 during the same time frame, as seen in the chart below.
NVO Stock Underperforms the Industry, Sector & the S&P 500
Image Source: Zacks Investment Research
Novo Nordisk is trading at a discount to the industry, as seen in the chart below. Going by the price/earnings ratio, the company’s shares currently trade at 14.70 forward earnings, which is lower than 18.86 for the industry. The stock is trading much below its five-year mean of 29.25.
NVO Stock Valuation
Earnings estimates for 2026 have deteriorated from $3.47 to $3.38 per share over the past 30 days. During the same time frame, Novo Nordisk’s 2027 earnings estimates have decreased from $3.44 to $3.27.
NVO Estimate Movement
Image Source: Zacks Investment Research
Here’s How to Play NVO Stock
While Novo Nordisk, currently carrying a Zacks Rank #4 (Sell), remains one of the strongest franchises in diabetes and obesity care, the recent share price rebound appears to reflect much of the positive near-term news, including expanding access for Wegovy, continued momentum for its oral GLP-1 portfolio and favorable regulatory developments. At the same time, consistent downward earnings estimate revisions underscore investor concerns around slowing growth, pricing pressure and rising competitive intensity. Although the stock now trades at a discount to its historical valuation, a sustained re-rating will likely require clearer evidence that the company can stabilize market share and return to durable earnings growth.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Looking ahead, Novo Nordisk's long-term outlook remains supported by its broad GLP-1 franchise, expanding pipeline and multiple lifecycle management opportunities. However, near-term execution risks remain elevated as Eli Lilly continues to gain traction in both injectable and oral obesity therapies, while policy changes and reimbursement dynamics create additional uncertainty. With meaningful growth drivers already balanced by persistent competitive and operational headwinds, investors may prefer to await stronger evidence of commercial stabilization and improving earnings momentum before becoming more constructive on the stock.
Zacks' Research Chief Names "Stock Most Likely to Double"
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.