Key Points

• Participants in a maintenance study of VK2735 maintained up to 97% of their weight loss after 12 weeks.

• The global obesity drug market could grow to $150 billion by 2035.

• 10 stocks we like better than Viking Therapeutics ›

Shares of Viking Therapeutics (NASDAQ: VKTX) surged on Tuesday after the biopharmaceutical specialist announced encouraging clinical trial results for its experimental weight loss drug.

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Positive results

People receiving weekly doses of Viking's investigational obesity drug, VK2735, lost 16% to 19% of their bodyweight after 21 weeks, compared with roughly 0% for placebo.

Moreover, participants' weight loss was progressive, with no evidence of plateau, suggesting that further weight loss is likely with longer-term dosing.

After the 21-week period, study participants were transitioned to maintenance dosing regimens for an additional 12 weeks. People who switched to every-other-week dosing maintained up to 97% of their weight loss, while those who were placed on monthly dosing schedules maintained up to 90%, compared to 61% for placebo.

Importantly, VK2735 demonstrated "highly encouraging tolerability" during the maintenance phase of the study, with gastrointestinal-related adverse events similar to placebo. Discontinuation rates, in turn, were low.

"We believe flexible dosing approaches will provide both patients and their providers with new options for improving long-term adherence to therapy and sustained weight management, both of which are essential to realizing the most critical benefits of weight loss, such as improved cardiovascular health, enhanced physical function, and increased quality of life," Viking CEO Brian Lian said.

A massive market opportunity

Annual sales of obesity drugs could soar to $150 billion by 2035, according to Morgan Stanley. Healthcare giants Eli Lilly and Novo Nordisk currently dominate the market. Yet the clinical success of VK2735 suggests that Viking Therapeutics could become a formidable challenger to the leaders of this lucrative and rapidly expandingglobal market

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Joe Tenebruso 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.