Weight loss drugmakers Eli Lilly ( NYSE: LLY ) and Novo Nordisk ( NVO ) were among the notable decliners in the premarket Thursday after Viking Therapeutics ( NASDAQ: VKTX ) announced plans to start a late-stage trial for its obesity candidate VK2735 later this year. The update shared with Viking's ( VKTX ) Q2 2024 financials on Wednesday evening has sent the company stock ~18% higher in the premarket, adding on to strong postmarket gains. Meanwhile, Eli Lilly ( LLY ) and Novo ( NVO ), the makers of GLP-1 weight loss drugs tirzepatide and semaglutide, have lost ~3% each.
Pfizer ( PFE ), Amgen ( AMGN ), Altimmune ( ALT ), and Structure Therapeutics ( GPCR ), which are also seeking a piece of the lucrative obesity drug market, are trading flat. Meanwhile, AstraZeneca ( AZN ), which signed a $2B licensing deal for China-based Eccogene's weight loss candidate ECC5004 in 2023, has lost ~4% following its Q2 2024 financials. Roche ( OTCQX:RHHBY ), which entered the obesity market this year with its $2.
7B buyout of the U.S. weight loss drug developer Carmot Therapeutics, has added ~2% in reaction to its Q2 financials.
Viking's ( VKTX ) plans for VK2735 indicate an expedited timeline for its development. Previously, the San Diego, California-based biotech said it would start a Phase 2b trial for the candidate after generating positive data from a mid-stage trial. After receiving written feedback from the FDA, "we are advancing this compound into Phase 3 development," CEO Brian Lian said, adding that "we are currently preparing for an end-of-phase 2 meeting with the agency, which we expect to occur later this year.
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