Eli Lilly’s Oral Obesity Drug Passes Maintenance Test After Wegovy, Zepbound — Wall Street Flags Win For Viking Therapeutics

Lilly’s Orforglipron is eligible for a fast-track review by the FDA in treating obesity.

• The company studied Orforglipron for weight maintenance over 52 weeks in patients who were on 72 weeks of popular injectable weight-loss drugs.
• Orforglipron delivered superior weight maintenance when coupled with a healthy diet and physical activity as compared to placebo in the trial.
• According to analyst H.C. Wainwright, the positive study result from Lilly materially de-risks Viking's (VKTX) oral VK2735 program.

Eli Lilly and Company (LLY) said on Thursday that its oral weight loss drug Orforglipron helped weight maintenance in patients who were previously treated with other injectable weight loss therapies in a late-stage study.

The company studied Orforglipron for weight maintenance over 52 weeks in patients who were on 72 weeks of popular injectable weight-loss drugs Wegovy and Zepbound. While Zepbound is Lilly’s own injectable weight-loss drug, Wegovy is owned by its rival Novo Nordisk. Orforglipron delivered superior weight maintenance when coupled with a healthy diet and physical activity as compared to placebo in the study, the company said.

The overall safety and tolerability profile of Orforglipron in the trial was consistent with previous studies, the company added.

Lilly Awaits FDA Green Light

Orforglipron was discovered by Chugai Pharmaceutical Co., Ltd. and licensed by Lilly in 2018. The company is studying the drug in the treatment of type 2 diabetes in addition to obstructive sleep apnea, hypertension, and knee osteoarthritis in adults with obesity.

Viking Therapeutics Investors Cheer Lilly’s Trial Data

According to analyst H.C. Wainwright, the positive study result from Lilly materially de-risks Viking's (VKTX) oral VK2735 program and its maintenance dosing strategy. The firm believes the data helps reinforce the commercial viability of an oral maintenance approach.

Wainwright has a ‘Buy’ rating on Viking Therapeutics with a price target of $102 on the shares.

Viking Therapeutics is currently evaluating several VK2735 dosing options, including a potential once-monthly subcutaneous injection and daily or weekly oral doses, in an ongoing early-stage clinical trial to sustain the initial weight loss achieved after weekly injections.  

How Did Stocktwits Users React?

While shares of LLY traded 3% higher at the time of writing, VKTX rose 1%. On Stocktwits, retail sentiment around LLY stayed within the ‘bullish’ territory over the past 24 hours, while message message volume fell from ‘high’ to ‘normal’ levels.

LLY stock has gained 38% this year while VKTX has dropped 14%. 

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