From Nasdaq: 2025-01-04 16:23:18

Viking Therapeutics (NASDAQ: VKTX) saw a 24% drop in share price in December due to intense competition from large pharmaceutical player Merck (NYSE: MRK). Merck’s licensing deal with Hansoh Pharma for the weight-loss drug HS-10535 poses a threat to Viking’s obesity drug VK2735, which is in advanced development stages. Merck committed $112 million upfront and up to $1.9 billion in milestone payments for HS-10535. The weight-loss drug market in the U.S. is lucrative, with high demand for oral treatments like VK2735. Investors are cautious but optimistic about Viking’s potential in the market.

While Merck’s move poses a challenge, Viking’s VK2735 could still be a promising investment with its oral administration advantage over competing injectable drugs like Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound. The Motley Fool Stock Advisor team did not include Viking Therapeutics in their list of 10 best stocks to buy, but investors should consider the potential of VK2735 in the weight-loss market. The Stock Advisor service has a successful track record of outperforming the S&P 500 since 2002, offering valuable insights for investors seeking high returns.



Read more at Nasdaq: Why Viking Therapeutics Stock Plummeted by 24% in December