Viking Therapeutics

Eli Lilly's Zepbound approved by FDA for treating moderate-to-severe obstructive sleep apnea (OSA) in adults with obesity, becoming the first and only prescription drug for this dual condition. Zepbound's approval was based on phase III studies showing significant reduction in breathing disruptions and weight loss. Lilly's stock rose following the approval and Novo Nordisk's disappointing data on its obesity drug. Lilly also markets tirzepatide as Mounjaro for type II diabetes, with both drugs driving significant revenue. Lilly is expanding manufacturing capacity to meet demand.

Novo Nordisk's experimental diabetes and weight-loss drug CagriSema fell short of expectations, achieving 22.7% weight loss vs. projected 25%. The stock dropped over 20%.

Novo Nordisk's experimental diabetes and weight-loss drug CagriSema achieved 22.7% average weight loss in a phase 3 trial, falling short of the projected 25%. The drug combines semaglutide with cagrilintide, aiming for greater weight loss by mimicking multiple hormones. Despite the shortfall, 40.4% of patients achieved over 25% weight loss. Novo Nordisk stock dropped over 20% following the news, while rivals Eli Lilly and Viking Therapeutics saw stock rises.

Novo Nordisk's CagriSema showed superior weight loss in REDEFINE 1 trial, but fell short of expectations, causing stock decline. Competitors like Eli Lilly saw gains.

Merck & Co. pays Hansoh Pharma $112M for rights to a preclinical obesity pill, HS-10535, outside China, with potential $1.9B in milestone payouts. The deal suggests Merck's entry into the obesity market, disappointing potential acquisition targets. HS-10535 is an oral GLP-1 agonist, similar to Wegovy.

Viking Therapeutics and Summit Therapeutics stocks doubled in 2024. Analysts predict Viking could gain 166% to $125, and Summit 68% to $30 in 2025. Viking's VK2735, a weight loss drug, shows promising trial results. Summit's ivonescimab, a cancer therapy, outperforms Keytruda in trials.

The obesity drug market is projected to reach $200 billion by 2031, with biotech companies like Viking Therapeutics (VKTX) and Corbus Pharmaceuticals (CRBP) leading the charge. VKTX, with its dual GLP-1/GIP agonist VK2735, and CRBP, with its CRB-701 and CRB-913, are both backed by Piper Sandler's bullish notes and strong Wall Street ratings, indicating significant growth potential.

Eli Lilly's tirzepatide (Mounjaro, Zepbound) dominates the weight loss market, generating billions in sales. Competing with Novo Nordisk, Lilly's Zepbound showed superior weight loss results in studies, positioning it to potentially surpass Novo Nordisk's sales by 2025. However, challenges from compounding pharmacies and supply issues pose risks.