The GLP-1 arena is currently dominated by two giants, Novo Nordisk and Eli Lilly, forming a “duopoly” in this high-growth field. While there is no universally acknowledged “third leader” in this space yet, Viking Therapeutics (NASDAQ: VKTX) is undoubtedly among the top contenders.
So far this year, Viking’s stock price has fallen more than 35%. However, as shares plummeted, market optimism surrounding this GLP-1 player has grown significantly. According to the consensus price target among Wall Street analysts, the stock has upside potential of up to 245%. In addition, the latest 13F filings reveal that billionaire investor Stanley Druckenmiller has bought the dip in this pharmaceutical stock.
According to the Q2 13F filing from his family office, Duquesne Family Office, Druckenmiller initiated a new position in Viking Therapeutics. Per SEC regulations, investment firms managing over $100 million are required to file a 13F form quarterly, disclosing their equity buys and sells.
To Druckenmiller, Viking represents a compelling asymmetric investment opportunity—where potential gains significantly outweigh potential risks. Venture capital serves as a classic example: while most early-stage companies fail, a single “unicorn” can generate returns that offset losses across the entire fund.
The same lens can be applied to Viking. The company is advancing a pipeline of obesity and weight-management therapies. Although its stock recently tumbled on less-than-expected Phase 2 results for its oral GLP-1 candidate, VK2735, Wall Street analysts remain optimistic, with several reiterating Buy ratings. Key reasons include:
Additionally, Viking’s subcutaneous formulation of VK2735 has entered Phase 3 trials, and VK2809—a candidate for metabolic dysfunction-associated steatohepatitis (MASH)—is also nearing Phase 3 development.
Although Viking remains in the clinical stage, FDA approval of even one candidate could unlock substantial upside, allowing it to capture a share of the lucrative weight-loss drug market. According to Goldman Sachs research, the global total addressable market for obesity treatments could reach $120 billion within the next decade—more than enough room for players beyond Lilly and Novo.
Investing in Viking ultimately boils down to a high-risk, high-reward bet on clinical success. While the outcome remains uncertain, the immense potential of the obesity drug market is not. Viking could emerge as the next breakthrough in weight management—or it could join the long list of biotech companies that stumbled during development.
For potential investors, the decision to buy Viking shares hinges largely on personal risk tolerance.
