The GLP-1 market is becoming one of the fastest-growing segments in the pharmaceutical industry. While large drugmakers such as Roche, Regeneron, and Amgen are developing candidates to capture share, smaller biotechs including Viking Therapeutics (VKTX) and Kailera Therapeutics (KLRA) are also entering the race.
Investing in these lesser-known names carries significantly higher risk; clinical setbacks could quickly wipe out market value. But the upside is also larger, with the potential to double investors’ money by 2031.
Viking Therapeutics will release data from multiple clinical trials over the next 18 months. Later this year, results from a maintenance study are expected. The study is testing whether daily, weekly, or monthly dosing of its lead candidate VK2735, after an induction period, can help patients maintain weight loss.
VK2735 is a dual GLP-1 and GIP receptor agonist. A subcutaneous formulation is being evaluated in two Phase 3 trials: one enrolling overweight or obese patients with at least one weight-related comorbidity, and another enrolling overweight or obese patients with type 2 diabetes. Both studies are expected to complete next year.
In a Phase 2 study, subcutaneous VK2735 achieved mean weight loss of up to 14.7% over 13 weeks. If Phase 3 trials show mean weight loss of 23% to 25% in non-diabetic patients with acceptable tolerability, the stock would likely soar. An oral version of VK2735 is also expected to enter late-stage studies before year-end. If both formulations pass Phase 3, Viking could carve out a place in the GLP-1 market and deliver market-beating returns through 2031.
Kailera Therapeutics went public earlier this year and licensed a portfolio of anti-obesity candidates from its Chinese partner, Jiangsu Hengrui Pharmaceuticals. Its lead product, ribupatide injection, is also a dual GLP-1 and GIP receptor agonist, currently in Phase 3 studies for chronic weight management, with some higher doses in Phase 2 trials. An oral formulation of ribupatide is also in development.
More notable is KAI-4729, an investigational drug that mimics the action of three hormones. This approach could lead to greater weight loss, similar to Eli Lilly’s (LLY) triple agonist retatrutide, which has shown strong results in Phase 3 studies. That does not guarantee Kailera’s triple agonist will succeed, but it highlights a differentiated and attractive pipeline, especially for a company valued at just $2.33 billion.
Some of Kailera’s candidates have already performed well in clinical trials conducted in China. Although U.S. regulators may require additional testing, overseas clinical success provides at least some evidence of viability. Over the next two years, as more data emerge on ribupatide, KAI-4729, and other candidates, Kailera’s prospects will become clearer. If the company can impress the market, its share price could rise significantly and potentially sustain a run through 2031, positioning it as a notable player in chronic weight management.
Both companies are small-cap with high potential, but whether they can replicate Eli Lilly’s success depends on key clinical data, regulatory pathways, and future commercialization capabilities. Risk and reward go hand in hand, and investors should closely watch the upcoming data readouts.
