A bold price target from Truist Financial has put clinical-stage biotech firm Viking Therapeutics (VKTX) firmly in the spotlight across the booming weight-loss drug sector. The banking giant set an $83 price objective for the stock, representing a staggering 188% upside from its opening price of $28.75 on June 8. With no commercial products on the market yet, the company’s value hinges entirely on its lead drug candidate VK2735, bringing substantial opportunities alongside notable risks for investors.
The global market for anti-obesity medications is poised for explosive growth. The sector generated around $15 billion in sales in 2024, and industry forecasts project its value will surge to $150 billion by 2035. GLP-1 therapies have emerged as the mainstream treatment category in this space. Beyond weight management, these drugs are being approved for additional indications, including cardiovascular risk reduction, obstructive sleep apnea and non-alcoholic fatty liver disease, greatly expanding their commercial potential. Viking Therapeutics is positioning itself to capture a share of this lucrative market by developing VK2735 in both injectable and oral formulations.
The company’s research pipeline is approaching a series of critical milestones. The injectable version of VK2735 is currently in Phase 3 clinical trials, while the oral formulation is on track to enter Phase 3 in the third quarter of 2026. Clinical data from Phase 2 trials has highlighted a key competitive edge: VK2735 delivers rapid weight loss results. Its injectable form achieved a 14.7% reduction in body weight within 13 weeks, and the oral variant posted a 12.2% weight loss over the same period, outpacing the efficacy timeline of rival oral products from industry heavyweights Novo Nordisk and Eli Lilly. Viking is also exploring a dual-formulation combination strategy for VK2735, with Phase 1 trial results due for release this coming quarter. Positive findings would further strengthen the drug’s market competitiveness.
Nevertheless, the candidate faces clear drawbacks. Phase 2 data revealed unsatisfactory tolerability for oral VK2735, with 20% of participants discontinuing treatment due to adverse reactions — a major challenge the company needs to address in subsequent Phase 3 studies. Intense competition adds another layer of pressure. Novo Nordisk and Eli Lilly have established dominant positions in the weight-loss drug market, with their oral treatments already launched and gaining solid sales momentum. As a latecomer, Viking faces steep hurdles to stand out amid fierce rivalry.
As a clinical-stage biotech, Viking Therapeutics generates no revenue and continues to rack up net losses. The company reported a net loss of $109 million in 2024, which widened to $359 million in 2025. As of the end of March this year, it held $603 million in cash, cash equivalents and short-term investments. However, its cash reserves have dwindled rapidly: the figure stood at $706 million at the end of 2025, meaning the firm burned through $103 million in just three months. While existing funds can sustain ongoing research for now, any setbacks in VK2735’s clinical trials would deal a severe blow to the company’s prospects.
Truist’s aggressive price target reflects high market confidence in VK2735’s potential and the long-term prospects of the weight-loss drug industry. Backed by a massive addressable market, faster weight-loss effects and a dual-formulation development plan, Viking Therapeutics has the makings of an industry dark horse. Even so, investors must weigh a full spectrum of risks. Uncertain clinical outcomes, lingering tolerability issues for the oral drug, fierce competition from established pharmaceutical giants, persistent losses and accelerating cash burn all point to elevated share price volatility ahead. The third quarter’s wave of clinical data will serve as a key catalyst, prompting a fresh reassessment of VKTX’s true investment value.
