Viking Therapeutics, Inc.

Сильный индекс, значительно вырос. Быки крепко уверены в своих позициях.

Strong index, significantly up. The bulls are very confident in their positions.

Сильный индекс, значительно упал. Рынок не поддерживает быков.

Strong index, significantly down. The market does not support the bulls.

Сильный индекс, значительно упал. Отток средств из лонгов на высоком уровне.

Strong index, significantly down. Outflow of funds from longs at a high level.

Key Points
CRISPR Therapeutics’ first and flagship product’s revenue isn’t showing up yet on its reported top line, but it’s coming, and soon.
Viking Therapeutics’ GLP-1 weight-loss drugs looks like another version of options that are already on the market. However, VK2735 is unique in some important ways.
Given that the beginning of 2027 is now less than four months away, it wouldn't be wrong to begin positioning your portfolio for the coming year.
To this end, here's a closer look at two pharmaceutical stocks, each with a handful of developments and/or milestones already lined up that could be -- and should be -- bullish.
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CRISPR Therapeutics
When CRISPR Therapeutics (NASDAQ: CRSP) first won FDA approval for its gene-editing sickle cell disease treatment Casgevy back in late 2023, it was seemingly ready to launch with marketing partner Vertex Pharmaceuticals. Now, nearly three years later, there's still minimal Casgevy revenue being generated, and, technically, no reported generally accepted accounting principles (GAAP) revenue from drug sales.
Don't be discouraged, though. It's coming, beginning in earnest next year.
The seemingly slow start reflects how Casgevy is administered and when its revenue is officially recorded by CRISPR. See, since each treatment is custom-created for that particular patient, it can take roughly a year to complete the treatment regimen. And that's after a patient has been identified and approved as an eligible candidate for the drug, which can take a while as well.
Moreover, CRISPR Therapeutics doesn't officially book revenue until the entire treatment process is complete and the treatment is billed, with CRISPR's share then collected from Vertex. The whole process can take a while.
It's brewing, though. While it's done CRISPR no fiscal good yet, the $76 million worth of Casgevy revenue that Vertex facilitated in Q2 is a 78% year-over-year improvement and a clear acceleration from Q1's figure of $43 million.
Analysts are looking for this ongoing sales growth to finally start benefiting CRISPR Therapeutics in earnest in 2027, projecting the company's reported revenue to expand from just over $40 million this year to over $156 million next year. That should get investors' attention, making the biopharma company a very real contender.
Viking Therapeutics
The other drugmaker with bullish catalysts in the cards for 2027 is Viking Therapeutics (NASDAQ: VKTX).
Simply put, Viking Therapeutics is entering the crowded GLP-1 weight-loss drug market, but with a twist. Rather than the weekly injections that more familiar options like Eli Lilly's Zepbound and Novo Nordisk's Wegovy require, Viking's VK2735 shows strong promise as a more convenient monthly maintenance injection. The company also expects to begin late-stage trials of the same weight-loss drug in an orally administered pill format before the end of this year.
VK2735 has not been approved by any regulatory body in any form yet, to be clear. But that's somewhat the point -- its clinical trial results thus far have been encouraging, setting the stage for more good news in the year ahead as the company posts developmental progress for the GLP-1 weight loss drug. The fact that shares have been in a lethargic funk for nearly a year now only bolsters their potential upside as that news moves VK2735 closer to what are hopefully multiple approvals.
Analysts are on board anyway. Nearly all of them covering this stock currently rate VKTX a strong buy, with a consensus 12-month price target of $93.11, which is 175% above the ticker's present price.
Should you buy stock in CRISPR Therapeutics right now?
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Set Yourself Up for a Strong 2027: 2 Pharmaceutical Stocks to Buy in September

Key Points
Axsome Therapeutics has transitioned into a commercial-stage entity with rapidly growing revenue from its central nervous system treatments.
Viking Therapeutics remains a clinical-stage player with significant potential in the high-demand obesity and metabolic disease markets.
Which of these biotech contenders offers the better balance of risk and reward for your portfolio?
Is it better to own a company already selling drugs or one with a potential blockbuster in testing? Investors are weighing Axsome Therapeutics (NASDAQ:AXSM) against Viking Therapeutics (NASDAQ:VKTX) to decide.
Axsome focuses on commercializing treatments for depression and sleep disorders, showing significant revenue growth. Viking is a clinical-stage developer targeting the massive obesity market but has no products on the market yet. Both represent different stages of growth within the biotech world, making them popular choices for healthcare-minded portfolios.
The case for Axsome Therapeutics
Axsome develops and sells treatments for central nervous system conditions such as depression, migraines, and narcolepsy. It is a prominent name among biotech stocks, with a portfolio that includes Auvelity, Sunosi, and Symbravo. The company recently entered a settlement that grants license rights to five generic manufacturers for Sunosi starting in 2040, providing long-term clarity on its patent life and market position. In its latest annual report, filed in early 2026, the company noted it had over 900 full-time employees to support its commercial reach.
In FY 2025, revenue reached nearly $638.5 million, marking growth of close to 65.5% compared to the prior year. This increase was driven by the continued expansion of its key central nervous system treatments into new geographic markets. The company reported a net loss of approximately $183.2 million, resulting in a negative net margin, which is the percentage of revenue left after all expenses are paid, of roughly 28.7%. Some investors focus on the P/S ratio to value the business relative to this growing revenue.
As of December 2025, the debt-to-equity ratio was nearly 2.7x, meaning the company uses significant debt relative to its equity. The current ratio of approximately 1.6x indicates it has $1.60 in assets for every $1.00 in liabilities due within a year. Free cash flow, or cash from operations minus capital spending, was nearly negative $93.9 million as the company continues to invest in its commercial pipeline. This spending is intended to support the long-term growth of its approved products and the development of new candidates.
The case for Viking Therapeutics
Viking is a clinical-stage business that develops therapies for obesity and metabolic diseases. It currently has no products on the market, as its primary candidates like VK2735 are still undergoing clinical testing for weight loss. The company relies on a master license agreement with Ligand Pharmaceuticals (NASDAQ:LGND) to access the core technology used in its drug development programs. Viking manages its operations with a lean staff of about 53 full-time employees, according to its latest annual report filed in early 2026.
For FY 2025, Viking reported revenue of $0.0, which is standard for a biotech firm in the development phase. The business reported a net loss of approximately $359.6 million as it accelerated investment in its clinical trials to move its obesity treatments toward regulatory review. Investors generally view these losses as the necessary cost of targeting massive future markets, which factors into the Forward P/E. While there are no sales to measure, the clinical data remains the primary driver of the company value.
As of December 2025, the debt-to-equity ratio was 0.0x, indicating the company carries no debt relative to its equity. Its current ratio was roughly 9.3x, meaning its liquid assets far exceed its upcoming bills and provide a significant cash runway for research. Free cash flow was nearly negative $278.7 million, representing the cash used to support its ongoing research and operational needs. This spending level is expected for a company in the high-stakes world of drug development where clinical success is paramount.
Risk profile comparison
Axsome faces risks from its heavy reliance on only a few approved products, as any commercial or regulatory setback would be harmful to the business. It also carries significant debt from a loan agreement that includes restrictive rules on how much cash it must keep on hand. The company competes against giants like Pfizer (NYSE:PFE), and it faces potential conflicts from licensing technology from an entity owned by its own chief executive.
Viking faces the risk that its drug candidates might fail in clinical trials or not receive the necessary regulatory approval to reach the market. Because it has no revenue, the company must eventually raise more capital, which could lead to shareholder dilution. It also faces competition from other developers like Altimmune (NASDAQ:ALT) and depends entirely on its license with Ligand, which would cripple the company if it were terminated.
Which stock would I buy in 2026?
I'd go with Viking Therapeutics, though Axsome makes this closer than some may expect. Axsome is a commercial-stage company with drugs already on the market and growing fast. Its lead drug just received a new FDA approval for Alzheimer's agitation, revenue grew strongly year over year, and the company believes its cash runway extends into profitability. For investors who prefer owning a company already generating revenue, Axsome has a credible story.
But revenue missed estimates in the most recent quarter, losses are widening as selling costs surge, and the path to profitability requires everything to keep going right commercially.
Viking is playing in one of the largest healthcare markets ever created. Its obesity drug, VK2735, is showing strong results in both injectable and oral formulations, with a phase 3 program underway. The competitive landscape includes giants like Eli Lilly and Novo Nordisk, but if Viking's drug succeeds, the upside dwarfs anything Axsome is building toward.
For a long-term investor comfortable with clinical risk, Viking's opportunity is simply larger. That's why it's my pick today.
Should you buy stock in Axsome Therapeutics right now?
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Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Axsome Therapeutics, Eli Lilly, Novo Nordisk, and Pfizer. The Motley Fool recommends Viking Therapeutics. The Motley Fool has a disclosure policy.

Axsome Therapeutics vs. Viking Therapeutics: Which Healthcare Stock Is a Better Buy in 2026?

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Eagle Outfitters, Inc. (Symbol: AEO), where a total volume of 41,587 contracts has been traded thus far today, a contract volume which is representative of approximately 4.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 81.1% of AEO's average daily trading volume over the past month, of 5.1 million shares. Particularly high volume was seen for the $17 strike call option expiring September 18, 2026, with 4,780 contracts trading so far today, representing approximately 478,000 underlying shares of AEO. Below is a chart showing AEO's trailing twelve month trading history, with the $17 strike highlighted in orange:
Chewy Inc (Symbol: CHWY) saw options trading volume of 54,736 contracts, representing approximately 5.5 million underlying shares or approximately 80.7% of CHWY's average daily trading volume over the past month, of 6.8 million shares. Particularly high volume was seen for the $21.50 strike call option expiring September 11, 2026, with 3,477 contracts trading so far today, representing approximately 347,700 underlying shares of CHWY. Below is a chart showing CHWY's trailing twelve month trading history, with the $21.50 strike highlighted in orange:
And Viking Therapeutics Inc (Symbol: VKTX) saw options trading volume of 13,605 contracts, representing approximately 1.4 million underlying shares or approximately 77.3% of VKTX's average daily trading volume over the past month, of 1.8 million shares. Particularly high volume was seen for the $42 strike call option expiring September 25, 2026, with 2,434 contracts trading so far today, representing approximately 243,400 underlying shares of VKTX. Below is a chart showing VKTX's trailing twelve month trading history, with the $42 strike highlighted in orange:
For the various different available expirations for AEO options, CHWY options, or VKTX options, visit StockOptionsChannel.com.
Further AEO Research:

Notable Wednesday Option Activity: AEO, CHWY, VKTX

Novo Nordisk NVO announced positive data from the phase III STEP Young study evaluating once-weekly subcutaneous semaglutide, in combination with a reduced-calorie diet and increased physical activity, in children with obesity aged six to under 12 years.
More on the STEP Young Study Data
The phase III STEP Young study met its primary endpoint by demonstrating a greater reduction in body mass index (BMI) at week 68 following treatment with semaglutide versus placebo. Both treatment groups received lifestyle modification, including a reduced-calorie diet and increased physical activity.
Importantly, 40.4% of children who were treated with once-weekly subcutaneous semaglutide were no longer classified as having obesity after week 68, compared with none in the placebo group. More than 85% of children had class II or III severe obesity at baseline.
Per the company, two out of five children treated with semaglutide reduced their BMI below the obesity threshold, reaching either a normal-weight or overweight classification, compared with none of the children receiving placebo.
The overall safety and tolerability profile of semaglutide seen in the STEP Young study was consistent with prior pediatric and adult studies, with no new safety concerns reported.
The company plans to present detailed data from the phase III STEP Young study at the Obesity Society’s annual meeting in November.
NVO’s Price Performance
Year to date, shares of Novo Nordisk have declined 5.3% against the industry’s rise of 16.4%.
Image Source: Zacks Investment Research
NVO Thrives on Semaglutide-Based Medicines
Novo Nordisk markets its semaglutide-based medicines under the brand names Ozempic (injection and oral pill) and Rybelsus (oral tablet) for type II diabetes (T2D), and Wegovy (injection and oral pill) for chronic weight management.
The company’s semaglutide-based medicines continue to demonstrate benefits beyond blood sugar control and weight loss, including reducing cardiovascular (CV) risk and improving kidney disease outcomes.
Novo Nordisk has been witnessing strong success with its GLP-1 medicines, Wegovy for obesity and Ozempic and Rybelsus for T2D.
In the first half of 2026, total reported Obesity care sales increased 20% year over year in DKK, or 24% at constant exchange rates, driven by higher sales across the Wegovy portfolio, including incremental sales from the newly launched Wegovy pill.
In late December, the FDA approved NVO’s 25 mg oral semaglutide (Wegovy pill) for obesity and CV disease, which was subsequently launched in early January. The Wegovy pill is also approved in the EU.
NVO Faces Rising Competitive Pressure
Novo Nordisk faces intense competition from Eli Lilly LLY in the obesity market. Lilly's Mounjaro for T2D and Zepbound for obesity have earlier demonstrated superior weight-loss efficacy in clinical studies, allowing the company to gain market share steadily. Despite being on the market for a shorter duration, these drugs have become LLY’s key top-line drivers.
Lilly has also secured FDA approval for its oral GLP-1 drug, orforglipron, for adults with obesity or overweight with weight-related medical problems, marketed under the brand name Foundayo.
While Novo Nordisk and Eli Lilly currently dominate this space, smaller biotechs like Structure Therapeutics GPCR and Viking Therapeutics VKTX are also advancing GLP-1–based therapies for treating obesity.
Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist (RA), VK2735, is being developed in both oral and subcutaneous formulations for the treatment of obesity. VKTX plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026.
Structure Therapeutics’ phase II ACCESS program on its orally administered small molecule GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Based on such encouraging results, GPCR has initiated dosing patients in its late-stage ACCOMPLISH program to evaluate aleniglipron for chronic weight management.
NVO Zacks Rank
Novo Nordisk 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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Novo Nordisk's Semaglutide Meets Goal in Pediatric Obesity Study

Key Points
Viking Therapeutics has significant upside potential based on Wall Street targets.
VK2735's dual-formulation strategy could differentiate it in a crowded obesity drug market, but it faces major risks, including strong competition and safety concerns with the oral formulation.
According to Yahoo! Finance, the consensus price target from analysts for Viking Therapeutics (NASDAQ: VKTX) is about $92, which indicates potential upside of 162% from its current stock price. It's a significant opportunity, but is it justified? Here's the lowdown from the skeptics' perspective.
Viking Therapeutics' prospects
The investment case for the stock rests on its lead drug candidate, VK2735, a dual GLP-1 and GIP agonist in development for obesity and type 2 diabetes. The two key advantages VK2735 may have over its rivals are a steeper rate of weight loss and the promise of a dual-formulation therapy (oral and subcutaneous). The combination of these two advantages would mean that patients could achieve significant weight loss with a subcutaneous (injectable) dose, followed by a more convenient oral maintenance dose.
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These properties mean VK2735 could win market share in a crowded field, and investors are looking forward to the results of its phase 3 trials of VK2735 in subcutaneous formulation (likely in the second half of 2027) and VK2735 in oral formulation (set to commence later this year with results likely in 2028/2029). In addition, investors are awaiting the imminent results of a small (180 adults) phase 1 maintenance trial designed to evaluate dosing regimens.
The skeptics' case for Viking Therapeutics
As with clinical-stage biopharmaceutical companies, there are two key considerations for investors to ponder, both of which pose risks for Viking Therapeutics. The first is competition from rival drugmakers and its possible impact on the market potential of Viking's pharmaceuticals. The second is Viking's success in its clinical trials, as that will also determine the value of its pipeline.
The obesity and type 2 diabetes treatment market is highly competitive, with drugs already within VK2735's class of drugs, including oral formulations. Moreover, much larger peers like Eli Lilly (NYSE: LLY), Novo Nordisk (NYSE: NVO), and Amgen are already developing next-generation or differentiated treatments.
Focusing on the more lucrative obesity market, the list of already approved drugs includes Eli Lilly's Zepbound (tirzepatide), which has the same mechanism as VK2735, and an oral tablet, Foundayo (orforglipron). Novo Nordisk has semaglutide approved as an injectable (Wegovy) for obesity and as an oral tablet (Rybelsus) for diabetes, with additional oral formulations for obesity in development.
Looking ahead, Eli Lilly plans to file for FDA approval of its GLP-1, GIP, and glucagon agonist, retatrutide, in early 2027, following several successful phase 3 trials. Novo Nordisk has CagriSema (which combines semaglutide and another drug) and an experimental drug, Amycretin, in phase 3 trials.
This is a highly competitive market, and it could be even more competitive by the time Viking completes its phase 3 trials for VK2735.
Clinical trial data
There is no end to reasons for trial failures. In the case of VK2735, it could come down to the safety and tolerability of the drug in oral form.
The stock crashed last summer after phase 2 results for VK2735 (oral) revealed a 20% discontinuation rate due to adverse events in the treated group. Oral formulations always have to answer the questions around potential gastrointestinal issues.
Any issue with the tolerability of VK2735 (oral) will threaten not only the market potential of the oral formulation itself but also its use as a maintenance dose in Viking's dual-formulation approach.
Where next for Viking Therapeutics
There's no doubt the company faces significant competitive and clinical trial risks, and investors are hoping Viking calibrates any titration issues with the oral formulation in the phase 3 trial. In the near term, the results from the phase 1 maintenance trial will provide indicative data on the potential dual-formulation strategy. A successful result may cause some skeptics to reconsider their position.
Should you buy stock in Viking Therapeutics right now?
Before you buy stock in Viking Therapeutics, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Viking Therapeutics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
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*Stock Advisor returns as of September 5, 2026.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amgen, Eli Lilly, and Novo Nordisk. The Motley Fool recommends Viking Therapeutics. The Motley Fool has a disclosure policy.

Viking Therapeutics Trades Well Below Its Wall Street Targets. Here's the Skeptics' Case.

Novo Nordisk NVO is counting on CagriSema as one of its most important next-generation cardiometabolic assets. The once-weekly injectable combines the long-acting amylin analog cagrilintide 2.4 mg with its blockbuster GLP-1 RA Wegovy (injectable semaglutide 2.4 mg) for obesity and type II diabetes (T2D). NVO has already filed for U.S. approval of CagriSema for weight management, with an FDA decision expected in the fourth quarter of 2026. The candidate could give Novo Nordisk a new growth avenue beyond its established semaglutide franchise.
CagriSema's obesity data have been encouraging, meeting the primary goals in two late-stage studies and supporting the FDA filing. In the phase III REDEFINE 1 study, CagriSema achieved a mean weight loss of 22.7% after 68 weeks, assuming all participants adhered to treatment, compared with 16.1% for Wegovy and 11.8% for cagrilintide. In the REDEFINE 2 study, which enrolled people with obesity or overweight and T2D, treatment with CagriSema achieved a mean weight loss of 15.7%, assuming all participants adhered to treatment. Both studies demonstrated statistically significant weight-loss benefits versus placebo.
We note that despite the positive results, Novo Nordisk faced significant setbacks following the announcement of these data in late 2024 and early 2025, respectively, as CagriSema demonstrated a lower-than-expected weight loss relative to investor expectations. The concern became more relevant after the phase III REDEFINE 4 head-to-head study against Eli Lilly's LLY obesity drug, Zepbound (tirzepatide 15 mg). CagriSema achieved 23% weight loss after 84 weeks, but failed to demonstrate non-inferiority to Zepbound, which delivered 25.5% weight loss under the efficacy estimand. The results make it difficult for CagriSema at its current dose to establish a clear efficacy advantage over Lilly's leading obesity therapy.
NVO Needs CagriSema to Diversify Beyond Semaglutide
The need for new growth drivers has become more pressing as NVO's core GLP-1 franchise faces increasing competition. In the first half of 2026, Novo Nordisk reported total sales of DKK 175.3 billion, but adjusted sales rose only 2% at constant exchange rates. The company has also guided for 2026 adjusted sales growth of 0% to -6% at CER, despite raising the outlook following stronger-than-expected GLP-1 momentum in the second quarter.
Eli Lilly illustrates the competitive pressure. Mounjaro (for T2D) generated $18.6 billion in first-half 2026 sales, up 106% year over year, while Zepbound generated $9.1 billion, up 60%. LLY’s first-half 2026 revenues increased 51%, driven primarily by volume growth from the two tirzepatide products. This momentum has made it increasingly important for Novo Nordisk to develop products that can expand beyond its marketed semaglutide franchise.
NVO Seeks to Strengthen CagriSema’s Competitive Position
The diabetes opportunity has gained further support from the broader REIMAGINE program. The phase III REIMAGINE 1-3 studies all met their primary endpoints, demonstrating significant HbA1c reductions and confirmatory weight-loss benefits across patients at different stages of T2D, including those treated with diet and exercise alone, metformin-based regimens and basal insulin. In REIMAGINE 2, CagriSema achieved a 1.91-percentage-point reduction in HbA1c and 14.2% weight loss after 68 weeks, significantly outperforming Wegovy on both measures. In REIMAGINE 3, CagriSema produced a 2.33-percentage-point reduction in HbA1c and 12% weight loss at 40 weeks when added to basal insulin. These results support CagriSema’s potential use across different stages of T2D treatment.
Novo Nordisk is also testing whether higher dosing can improve CagriSema’s obesity profile. The company plans to initiate a phase III study of high-dose CagriSema combining cagrilintide 2.4 mg with Wegovy HD (injectable semaglutide 7.2 mg) in the second half of 2026. Separately, the phase III REDEFINE 11 study is evaluating the full weight-loss potential of the existing 2.4 mg/2.4 mg combination in obese adults, with results expected in the first half of 2027.
Taken together, CagriSema offers NVO a potential new growth driver, with encouraging late-stage results in T2D, while its obesity prospects could improve if the higher-dose Wegovy HD combination succeeds. Therefore, its ongoing clinical and regulatory progress will determine whether CagriSema can become a meaningful contributor to NVO’s growth and competitive position.
NVO Faces Rising Competitive Pressure Beyond LLY in GLP-1s
While Novo Nordisk and Eli Lilly currently dominate this space, smaller biotechs like Structure Therapeutics GPCR and Viking Therapeutics VKTX are also advancing GLP-1–based therapies for treating obesity.
Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist (RA), VK2735, is being developed in 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 program on its orally administered small molecule GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Based on such encouraging results, Structure Therapeutics has initiated dosing patients in its late-stage ACCOMPLISHprogram to evaluate aleniglipron for chronic weight management.
NVO’s Stock Price, Valuation & Estimates
Year to date, Novo Nordisk shares have lost 10.3% against the industry’s 13.9% 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 13.30 forward earnings, which is lower than 18.71 for the industry. The stock is trading much below its five-year mean of 29.09.
NVO Stock Valuation
Earnings estimates for 2026 have increased from $3.38 per share to $3.45 per share over the past 30 days. During the same time frame, Novo Nordisk’s 2027 earnings estimates have increased from $3.27 to $3.42.
NVO Estimate Movement
Image Source: Zacks Investment Research
Novo Nordisk 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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Can CagriSema Help Novo Nordisk Close the Gap With LLY in Obesity?

Key Points
VK2735 is Viking's lead candidate for obesity with dual-formulation potential.
Major trial results are years away, so volatility is likely, but upcoming trial data could shift sentiment in the near term.
Viking Therapeutics (NASDAQ: VKTX) stock is down almost 66% from its early 2024 peak and down about 8.4% so far in 2026. While there's little the company can do regarding the drug development programs of larger peers like Eli Lilly and Novo Nordisk, Viking has a mix of near- and long-term catalysts in its pipeline that could meaningfully rerate the stock.
Viking Therapeutics and VK2735
The company's lead drug candidate is VK2735, a dual GLP-1 and GIP agonist in development in subcutaneous and oral forms to treat obesity and type 2 diabetes. VK2735 has two potential advantages over rival drugs, including Eli Lilly's Zepbound/Mounjaro (tirzepatide), Foundayo (orforglipron), and Novo Nordisk's Ozempic/Wegovy (semaglutide).
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The first is that VK2735 is being developed as a dual-formulation therapy, allowing patients to take it as a subcutaneous (injectable) formulation, followed by a more convenient oral maintenance dose. The second is that clinical trial evidence suggests it can achieve a steeper rate of weight loss than tirzepatide or semaglutide. As such, it offers the prospect of swifter weight loss and the convenience of a rapid shift to an oral dose.
However, as ever with clinical trial data, it needs to be qualified and put into context. If you've read the linked article, you'll note that I'm comparing phase 2 data for VK2735 with phase 3 data from Eli Lilly and Novo Nordisk offerings. These are not head-to-head trials, and it's the phase 3 data from the VK2735 trials that really matter. Still, the data is impressive and part of what investors are basing their hopes on.
Viking Therapeutics' pipeline
All of which leads me to the key catalysts for the stock, starting with the long-term catalysts:
The 78-week phase 3 trials of VK2735 (subcutaneous) are ongoing, with results unlikely until the third quarter of 2027.
The phase 3 trials of VK2735 (oral), which are set to commence in the fourth quarter of 2026, aren't likely to yield results until 2028 or even 2029.
Clearly, the key results from these trials are still some time away, and the stock is likely to remain volatile until they are released. Still, there are some near-term catalysts for the stock that investors need to be aware of.
Management needs to announce the initiation of the oral phase 3 program in the fourth quarter.
Viking has a 180-subject phase 1 maintenance dosing trial that is due to report results imminently.
The maintenance trial (a 19-week subcutaneous dose or placebo, followed by 12 weeks across a range of doses, including oral dosing) will provide data that could help support a dual-formulation strategy. For example, the phase 2 trial results for VK2735 (oral) included some disappointing safety and tolerability data, which caused the stock to crash in the summer of 2025. Some positive news on tolerability in the transition from subcutaneous to oral applications would improve sentiment toward the stock and VK2735.
What's next for Viking Therapeutics?
What really matters is the phase 3 trial results relative to rivals', and they won't come for a while. As such, any disappointing news from the maintenance trial needs to be put into context, as does any positive news. The debate over Viking Therapeutics won't end with the phase 1 results, but they are likely to impact the stock price in the near term.
Should you buy stock in Viking Therapeutics right now?
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Lee Samaha 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.

Viking Therapeutics Stock Is Down 66% From Its Peak. Here's What Comes Next.

Key Points
Viking's strong cash position funds operations through major milestones in 2027 and 2028.
VK2735's dual-formulation strategy and upcoming dosing data will be important for 2026.
Viking Therapeutics (NASDAQ: VKTX) has two phase 3 trials (obesity and obesity/type diabetes) in progress for its key weight loss drug, VK2735 (subcutaneous formulation), and another phase 3 trial (oral formulation) set to start in the fourth quarter of 2026.
While results from those two trials are years away, and management maintains it has cash into 2028, there is a near-term catalyst that is directly relevant to how these trials might be conducted and, arguably more importantly, to the investment case for the stock.
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The key benefit of VK2735
VK2735 is a dual GLP-1 and GIP agonist in trials for the treatment of obesity. It's a competitive market, but as previously discussed, VK2735 appears to have two benefits over its peers. First, it has demonstrated the ability to achieve a steeper rate of weight loss than its rivals in previous trials. Second, it's being developed as a dual-formulation therapy in which a more convenient oral maintenance dose will follow an initial subcutaneous (injection) dose. As such, the key benefit is steep weight loss followed by a convenient maintenance dose.
Why the phase 1 maintenance dose matters
VK2735 is already in a phase 3 trial as a subcutaneous formulation, but results won't be available until late 2027 at the earliest. It's also set to start a phase 3 trial (oral) in the fourth quarter of 2026, with results unlikely until 2028 -- as noted above, management maintains it's funded until 2028. While these critical results are some time away, the data from a 31-week phase 1 maintenance trial is due in the third quarter of 2026, and what it reveals will inevitably impact the stock.
The trial enrolled 180 patients who received weekly doses of VK2735 (injection) or placebo for 19 weeks, then transitioned to a range of dosing regimens, including weekly, biweekly, monthly (subcutaneous), and daily (oral), as well as placebo.
As you might surmise by the size of the trial and the wide range of dosages, this is not an extensive, high-powered trial. Still, its results will matter to the investment case.
Management has acknowledged that the results during the lastearnings call"could serve to inform the selection of doses in the upcoming VANQUISH extension studies expected to begin in late 2026 or early 2027."
If the trial fails and the data show patients regaining weight after the initial subcutaneous dose, or reveal significant gastrointestinal issues after switching to oral or less frequent subcutaneous dosing, then this could weaken the case for a dual-formulation strategy.
What could and couldn't happen after the results
At this point, it's important to note that the data from the phase 1 study are extremely unlikely to kill the phase 3 trials, and they won't stop the dual-formulation strategy. However, it could affect sentiment about the strategy's benefits, which is likely to impact the share price.
Similarly, a "successful" phase 1 trial would further support the strategy. That would be particularly the case if the data indicate good safety and tolerability with the subcutaneous-to-oral dosage in patients. That would strengthen investor sentiment and support the share price.
Should you buy stock in Viking Therapeutics right now?
Before you buy stock in Viking Therapeutics, consider this:
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Viking Therapeutics Has $502 Million in Cash and 1 Big Catalyst Left in 2026 -- Is That Enough?

Eli Lilly LLY remains a dominant player in the GLP-1 market, led by Mounjaro for type II diabetes (T2D) and Zepbound for obesity. The two tirzepatide-based therapies continued to drive Lilly’s top-line performance in the second quarter of 2026. Mounjaro generated $9.94 billion in worldwide revenues, up 91% year over year, while Zepbound sales increased 46% to $4.93 billion. Together, the two drugs accounted for nearly 65% of Lilly’s second-quarter revenues and remain the company’s biggest growth engines.
The strength of the franchise was primarily volume-driven. Mounjaro was particularly strong outside the United States, where revenues jumped 172% to $5.2 billion, largely reflecting higher volume. U.S. Mounjaro revenues rose 45% to $4.8 billion, despite lower realized prices. U.S. Zepbound revenues also increased 44% to $4.9 billion, driven by strong demand despite lower realized prices. Lilly expects Mounjaro and Zepbound to remain key growth drivers in the second half, with continued volume growth and market expansion likely to support sales despite increasing pricing pressure.
Novo Nordisk NVO remains Lilly’s primary competitor in the GLP-1 market, with Ozempic serving T2D patients and Wegovy targeting obesity. However, NVO’s core injectable franchise showed little growth in the second quarter. Ozempic generated $4.88 billion (DKK 31.4 billion) in sales, essentially flat at constant exchange rates (CER), while Wegovy injectable sales of $3.03 billion (DKK 19.5 billion) were also flat at CER. This contrasts with Lilly’s stronger momentum across its competing injectable therapies.
The second-quarter results suggest that Lilly has gained a considerable edge in the GLP-1 battle, supported by stronger demand and expanding market share across both the diabetes and obesity markets.
LLY’s Oral GLP-1 Push Could Challenge NVO’s Early Lead
Novo Nordisk had a first-mover advantage in oral obesity treatment, with Wegovy pill gaining traction since its January 2026 launch. However, Lilly should be able to close the gap with Foundayo. Though Foundayo generated only $98 million in sales in the second quarter, its launch is gaining momentum as access broadens. All three major U.S. PBMs now cover Lilly’s obesity portfolio, while the Medicare GLP-1 Bridge program began providing eligible patients access to Foundayo and Zepbound in July. These developments should support prescription growth and improve Foundayo’s sales in the second half.
Lilly could also narrow or even overtake Novo Nordisk’s oral lead if Foundayo’s rollout follows Zepbound’s trajectory. Zepbound gained a significant market share despite launching considerably later than Wegovy, and Lilly now has the opportunity to replicate that playbook in the oral market. Foundayo also offers a dosing advantage because it can be taken at any time of day without food or water restrictions, potentially making it more convenient than oral Wegovy. With regulatory review underway in more than 40 additional countries and Lilly pursuing a T2D indication, Foundayo has multiple avenues to broaden its reach and challenge oral Wegovy’s first-mover advantage.
Race to Make Oral Obesity Pill Intensifies
While Eli Lilly and Novo Nordisk currently dominate this space, smaller biotechs like Structure Therapeutics GPCR and Viking Therapeutics VKTX are also developing oral GLP-1 drugs for treating obesity.
Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist (RA), VK2735, is being developed in 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 program on its orally administered small molecule GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Based on such encouraging results, Structure Therapeutics has initiated dosing patients in its late-stage ACCOMPLISHprogram to evaluate aleniglipron for chronic weight management.
LLY’s Price Performance, Valuation and Estimates
Lilly stock has risen 14% so far this year compared with the industry’s growth of 11.9%. During the same time frame, the company has outperformed the sector and the S&P 500, as seen in the chart below.
LLY Stock Price Movement
Image Source: Zacks Investment Research
From a valuation standpoint, Lilly’s stock is expensive. Going by the price/earnings ratio, the company’s shares currently trade at 29.03 forward earnings, higher than 18.51 for the industry. However, the stock is trading below its five-year mean of 34.56.
LLY Stock Valuation
The Zacks Consensus Estimate for 2026 earnings per share has risen from $34.21 to $35.93 over the past 30 days, while that for 2027 has risen from $45.10 to $45.87.
LLY Estimate Movement
Image Source: Zacks Investment Research
LLY has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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How Does LLY's Q2 GLP-1 Portfolio Performance Stack Up Against NVO's?

Eli Lilly and Company’s LLY stock has risen 5.8% since it announced solid second-quarter results on Aug. 5. Lilly’s earnings and revenues comfortably exceeded estimates. Revenues rose 48% year over year to $22.97 billion while adjusted EPS rose 33% to $8.38.
Mounjaro and Zepbound remained the primary growth engines, with both drugs beating their respective consensus estimates. Newer medicines also made meaningful contributions across immunology, oncology and neuroscience. The company also raised its sales expectations for the second time this year.
However, a single quarter’s results are not so important for long-term investors. To make an informed decision on whether to buy, sell or hold the stock, it is important to evaluate the company’s fundamentals by examining its key strengths and weaknesses.
Strong Growth of LLY’s GLP-1 Drugs
Lilly has seen extraordinary momentum in its cardiometabolic franchise. Its blockbuster drugs, Mounjaro for type II diabetes and Zepbound for obesity, have become some of the fastest-growing medicines in pharmaceutical history, gaining from enormous global demand for GLP-1 therapies. These therapies account for around 65% of the company’s total revenues and have become key top-line drivers for Lilly, with demand rising rapidly.
In the first half of 2026, the drugs generated combined sales of $27.6 billion. Robust growth trends in the U.S. incretin analogs market and positive uptake trends of Mounjaro and Zepbound in new international markets led to strong sales growth, with the positive trend expected to continue. On the call, Lilly said that though Mounjaro’s revenue growth was robust in the second quarter, future growth will depend increasingly on market expansion rather than share gains.
Mounjaro and Zepbound are also consistently gaining approvals for new indications.
Lilly’s newly launched once-daily oral GLP-1 pill, Foundayo (orforglipron) for treating obesity, generated $98 million in sales in the second quarter, its first full quarter on the market.
Medicare access is becoming an increasingly important growth driver for Lilly's obesity portfolio. Eligible Medicare Part D beneficiaries gained access to Zepbound and Foundayo for weight management through the Medicare GLP-1 Bridge program beginning July 2026, while Mounjaro already has Medicare coverage for its type II diabetes indication.
Lilly’s Broad Obesity Pipeline
The obesity market is still in the early stages of expansion, with millions of eligible patients yet to begin treatment. As manufacturing capacity improves and global reimbursement gradually expands, Lilly has significant room to grow sales over the next several years. To maintain leadership in the GLP-1 market, Lilly is developing several next-generation, more powerful and more convenient GLP-1–based treatments, including oral options and multi-acting candidates.
Foundayo, which offers the benefits of GLP-1 therapy in a pill form, can prove to be a commercial game-changer for Lilly. Oral pills will be a more convenient alternative to the currently available once-weekly injectable obesity treatments like Zepbound and rival Novo Nordisk’s NVO Wegovy.
The launch uptake for Foundayo has been encouraging as Lilly expands physician engagement and direct-to-consumer promotion in the United States. Lilly has also secured coverage across all three major PBMs. Lilly is also continuing Foundayo’s international expansion. Foundayo is currently under regulatory review in more than 40 additional countries, with further approvals expected later this year. Lilly expects to launch Foundayo in most international markets by 2027.
Lilly expects Foundayo to become a multi-indication cardiometabolic opportunity. For the type II diabetes indication, Lilly has filed regulatory applications in several countries, including the United States. In addition to obesity and type II diabetes, Lilly is also evaluating Foundayo in six phase III studies for other diabetes and obesity-related diseases, with data from some of these expected later this year.
In its GLP pipeline, retatrutide is one of Lilly’s most important late-stage candidates, as it targets 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. The company is evaluating retatrutide in type II diabetes and obesity, along with other indications like obstructive sleep apnea (OSA), knee osteoarthritis, chronic low back pain and MASH, in late-stage studies. Across its TRIUMPH program, retatrutide has demonstrated profound levels of weight loss and improvements in A1C, cardiovascular risk factors, osteoarthritis pain and sleep apnea.
Lilly has completed the clinical data package needed to support global regulatory submissions for retatrutide in obesity, obstructive sleep apnea and knee osteoarthritis pain. The company plans to submit the treatment to the FDA in the first quarter of 2027. If approved, retatrutide could become another multibillion-dollar product.
LLY Successfully Diversifies Beyond GLP-1
Lilly's investment case is no longer dependent solely on its GLP-1 franchise. Lilly has secured approvals for several non-GLP1 therapies over the past few years. These include Omvoh for treating ulcerative colitis and Crohn’s disease, BTK inhibitor Jaypirca for mantle cell lymphoma and chronic lymphocytic leukemia, Ebglyss for moderate-to-severe atopic dermatitis, Kisunla (donanemab) for early symptomatic Alzheimer’s disease and Inluriyo (imlunestrant) for metastatic breast cancer. These drugs are also contributing to Lilly’s revenue growth, with the positive trend expected to continue. Key product revenues outside cardiometabolic health grew 121% in the second quarter.
Lilly has also embarked on an aggressive M&A spree in the past couple of years, acquiring biotech companies across oncology, neuroscience, cardiovascular disease, gene editing, inflammation, cell therapy and vaccines to diversify its long-term growth drivers beyond GLP-1 therapies. The company has announced more than $20 billion in biotech deals this year.
Race to Make Oral Obesity Pill Intensifies
Novo Nordisk had gained approval for an oral version of its obesity drug, Wegovy, in December 2025 and launched the pill in January 2026. Novo Nordisk announced sales of around $500 million (DKK 3.22 billion) from the Wegovy oral pill in its second-quarter results announced on Aug 4. Total prescriptions for Wegovy pill reached around 2.9 million in the second quarter.
While Lilly and Novo Nordisk currently dominate this space, smaller biotechs like Structure Therapeutics GPCR and Viking Therapeutics VKTX are also developing oral GLP-1 drugs for treating obesity.
Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed both as oral and subcutaneous formulations for the treatment of obesity. Viking plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026.
Structure Therapeutics recently initiated the phase III ACCOMPLISH program on its once-daily oral small molecule GLP-1 receptor agonist, aleniglipron.
LLY’s Stock Price, Valuation and Estimates
Lilly’s stock has risen 9.8% so far this year compared with the industry’s increase of 11.5% over the same timeframe.
LLY Stock Outperforms Industry
From a valuation standpoint, Lilly’s stock is expensive. Going by the price/earnings ratio, the company’s shares currently trade at 27.99 forward earnings, higher than 18.47 for the industry. However, the stock is trading below its 5-year mean of 34.57.
LLY Stock Valuation
The Zacks Consensus Estimate for 2026 has risen from $34.55 to $35.93 per share over the past 30 days, while that for 2027 has risen from $45.10 to $45.87 per share over the same timeframe.
LLY Estimate Movement
Image Source: Zacks Investment Research
Stay Invested in LLY Stock
Lilly has its share of problems. Prices of most of Lilly’s products are declining in the United States. Price is expected to continue to be a drag on top-line growth in the low to mid-teens percentage in 2026. Rising competition in the GLP-1 diabetes/obesity market is a key headwind. Also, sales of late-life cycle products like Trulicity, Taltz and Verzenio are expected to be flat to down in 2026.
Also, second-half sales growth could be slower than in the first half, as the U.S. rebate/discount estimate adjustments that benefited first-half sales are not expected to recur in the second half. Moreover, the second half faces tougher comparisons from prior-year international launches and normal vacation seasonality in Europe. Moreover, U.S. diabetes has also historically shown fourth-quarter seasonality. Due to these factors, second-half percentage growth may appear to decelerate, though Lilly expects significant absolute-dollar growth in the second half.
Nonetheless, Lilly remains one of the most compelling growth stories in the pharmaceutical industry, supported by its significant price appreciation, dominant position in the rapidly expanding obesity and diabetes markets, a diversified late-stage pipeline and strong financial performance. While the stock trades at a premium valuation after a remarkable multi-year rally, the company's long-term growth prospects remain among the strongest in the healthcare sector.
An existing investor should stay invested in this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
New investors may consider accumulating on market corrections rather than buying aggressively at current levels.
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