Recent clinical trials reveal that Viking Therapeutics (VKTX, Financial) and AstraZeneca have developed new oral weight loss medications showing significant results, potentially challenging existing injectable treatments. Viking's drug demonstrated a 6.8% weight reduction over 28 days, surpassing expectations with minor side effects. Meanwhile, AstraZeneca's AZD5004 yielded a 5.8% average weight loss in a similar timeframe with good tolerance and minimal side effects.
The promising results from these oral medications suggest they may compete with popular injectable treatments from companies like Eli Lilly and Novo Nordisk. Oral pills are cheaper and easier to manufacture, offering a more convenient option for patients, which could lead to increased long-term adherence to weight loss programs.
Following the announcement, Viking's stock initially surged over 8.5% before falling by more than 9%. AstraZeneca saw its shares increase by over 3.1%. In contrast, other companies like Eli Lilly and Novo Nordisk experienced slight declines in their stock prices.
Analysts predict that these new oral treatments might capture a significant share of the weight loss market, valued at around $130 billion by the century's end. Viking, in particular, has seen its stock rise over 290% this year, fueled by investor optimism about its oral weight loss drug. The potential for large pharmaceutical companies to acquire Viking remains a speculative yet intriguing possibility.
The introduction of oral weight loss medications by Viking and AstraZeneca intensifies competition within the pharmaceutical industry. Companies are racing to develop effective weight loss solutions that can appeal to a broader audience, particularly those looking for non-injectable options with fewer side effects.
Viking's CEO, Brian Lian, a former Amgen scientist, highlights the company's broader research focus, including treatments for diseases such as alcoholic liver disease. Meanwhile, AstraZeneca is pushing forward with clinical trials to further prove the efficacy and safety of AZD5004, anticipating trial completion by the end of 2025.
These developments underscore the competitive landscape in weight loss pharmaceuticals, driven by innovative solutions like oral medications that offer convenience and fewer adverse effects, potentially reshaping the market dynamics.
