Viking Therapeutics (VKTX) might be emerging as a rising star in the weight-loss drug sector. If you have $5,000 available to invest and can tolerate the associated risks and market volatility, then betting on this small pharmaceutical company could potentially yield substantial returns over the next decade.
In the current investment frenzy surrounding weight-loss drugs, investors typically have two choices: one is to invest in the established giants dominating the market, such as Eli Lilly (LLY) and Novo Nordisk (NVO); the other is to target those small biotech firms with the potential to disrupt the market landscape within the next five to ten years. Viking Therapeutics clearly falls into the latter category. This strategy carries higher risk, but the potential upside is also considerably more significant.
Viking Therapeutics’ core competitive advantage lies in its leading weight-loss drug candidate, VK2735. This is a GLP-1 class drug that has now advanced to Phase III clinical trials. According to statistics, as of mid-2025, there were approximately 277 obesity drugs in development globally, but the vast majority were still in preclinical or Phase I stages. A key principle in drug development is that the probability of successful approval increases substantially for compounds that reach later stages of development. Viking’s VK2735 has progressed to Phase III. While this doesn’t guarantee final approval, its odds of success are undoubtedly much higher compared to earlier-stage projects.
VK2735 has demonstrated impressive early clinical data, with its Phase II study results being considered a benchmark in the industry. Few drug companies have published Phase II data of such high quality. Viking Therapeutics is simultaneously developing both subcutaneous injection and oral formulation versions of VK2735, and is actively exploring different drug combinations. Their goal is to address a major challenge in the pharmaceutical industry—helping patients effectively maintain weight loss after the initial reduction.
If Viking Therapeutics can flawlessly execute its subsequent plans—meaning announcing robust Phase III study results and successfully securing approval for both formulations of VK2735—then it stands a very good chance of carving out a niche for itself in the massive and rapidly expanding weight-loss market. This could, in turn, lead to exceptional financial performance and astonishing stock price returns over the next decade.
Market reports indicate that Novo Nordisk’s CagriSema (an injectable weight-loss drug), while effective, did not surpass the efficacy of Eli Lilly’s tirzepatide under the same administration method and duration. Specifically, patients treated with tirzepatide achieved an average weight reduction of 25.5% over 84 weeks, while those using CagriSema experienced an average weight loss of 23%. According to the FDA’s approval standards, a new therapy needs to be at least as effective as already marketed drugs, or offer other clear advantages such as better patient tolerability.
This news holds significant implications for Viking Therapeutics. Although the formulation might differ, Viking’s VK2735 is also an injectable drug, and its mechanism of action targets the same GLP-1 weight-loss pathway as tirzepatide and CagriSema. If the injectable version of Novo Nordisk’s CagriSema ultimately fails to gain approval, it would mean one less competitor for Viking’s VK2735 in the future (assuming it gets approved).
Of course, investing in Viking Therapeutics requires a clear understanding of the associated risks. The company’s stock price could either soar or plummet in the coming years, depending on clinical trial outcomes or regulatory setbacks. With the intensifying competition in the weight-loss drug market, even clinical trial success doesn’t necessarily guarantee commercial success. VK2735 would need to deliver impeccable results in its Phase III studies to have a realistic chance of achieving a major market breakthrough and driving the stock price to new heights—this is undoubtedly a high bar. Therefore, only investors with an above-average tolerance for risk should consider allocating capital to this stock.
