Viking Therapeutics stock dropped after phase 2 trial’s disappointing tolerability data. Larger pharma companies may show interest in strategic options. Top-line results from the oral formulation of anti-obesity drug VK2735 were underwhelming, leading to doubts about near-term catalysts and market excitement.

Investors were let down by the Venture trial’s safety and tolerability data, especially the 20% discontinuation rate due to adverse events. This compares unfavorably with other phase 3 trials for oral weight loss drugs by Novo Nordisk and Eli Lilly. A potential acquisition or partnership with a larger pharmaceutical company could be on the horizon for Viking Therapeutics.

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Read more at Yahoo Finance: Think It’s Too Late to Buy This Leading Biotech Stock? Here’s Why There’s Still Time.