We Asked Retail How Viking Therapeutics Can Restore Investor Confidence: Majority Say Pursue Buyout Talks

Shares of Viking Therapeutics Inc. have dropped over 40% in the last six months, leading to a significant decline in retail investor confidence. 

Despite generating initial excitement with its anti-obesity drug candidate, sentiment surrounding the biotech company has turned 'extremely bearish,' according to Stocktwits data.

Viking's stock stumbled last month due to growing concerns about increased competition in the weight-loss drug market, which Novo Nordisk and Eli Lilly heavily dominate. 

Early trial results of the company's VK2735 — an oral GLP-1 drug currently being studied for obesity and other metabolic conditions — have shown a weight loss of 8.2% at the highest dose, significantly outperforming a placebo. 

The company recently announced the initiation of a Phase 2a trial for VK2735. Viking is also testing an injectable version of VK2735 in a mid-stage trial.

However, competition from bigger peers remains a significant hurdle. Analysts have pointed out that VK2735 shows promise, with some suggesting the injectable candidate outpaces Amgen's MariTide and is even better than Lilly's Zepbound.

A Stocktwits poll on what Viking should focus on to restore investor confidence revealed that 40% of respondents favored buyout discussions, while 30% voted for updates from the upcoming Phase 3 trial of VK2735's subcutaneous candidate.

VKTX poll sentiment and message volume Jan 15 as of 12 pm ET | source: Stocktwits

William Blair analyst Andy Hsieh noted in July last year that the rapid development of VK2735 would find its highest value in the hands of a big pharma company, fueling speculation that Viking could soon become an acquisition target. 

Oppenheimer echoed this sentiment earlier this month, listing Viking as one of five biotech companies that could be prime candidates for an "aspirational" takeover. 

The brokerage added that a potential acquisition could help trigger a reversal in the SPDR S&P Biotech ETF (XBI), which has been underperforming broader indices and is down more than 5% over the past month alone.

Viking's pipeline also includes treatments for metabolic steatohepatitis (MASH) and X-linked adrenoleukodystrophy (X-ALD), which may make it more attractive as a takeover target.

Viking’s stock has experienced a 17% decline so far in 2025, with a current short interest of 16.4%. 

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Editor's note: This story was corrected to clarify that Viking also has <an injectable version of VK2735 in a mid-stage trial and the poll results referring to Phase 3 trial updates refers to the subcutaneous version. <