JPMorgan says Viking weight loss drug still offers strong efficacy

JPMorgan analyst Hardik Parikh says Viking Therapeutics (VKTX)’ three highest-dosing arms for VK2735 showed average placebo-adjusted weight loss of 7.5%, 10% and 11%, which is “very strong” compared with other oral weight loss drugs in development. While tolerability overall was manageable, it was worse than expected based on the Phase 1 performance, the analyst tells investors in a research note. JPMorgan adds that while the treatment discontinuation rate due to adverse events in the Pages 2a study was 20% in the treatment arm, which is high, the placebo arm also showed a 13% discontinuation rate. While VK2735’s profile today does not look as clean as in the Phase 1 study, the oral drug still offers strong efficacy with a manageable tolerability profile, concludes JPMorgan. The firm keeps an Overweight rating on the shares, which are down 32% to $28.50 in premarket trading.