Viking Therapeutics Advances Metabolic Disease Programs Amid Growing Industry Interest

Viking Therapeutics, a small but ambitious player in the metabolic disease space, is making significant strides in its clinical programs for MASH (metabolic dysfunction-associated steatohepatitis) and obesity. The company's progress comes at a time of heightened industry interest in these therapeutic areas, as evidenced by recent high-profile deals and acquisitions.

Viking's Clinical Progress and Financial Position

Viking Therapeutics reported in its third-quarter earnings update that enrollment for its Phase III VANQUISH trials is proceeding rapidly. These trials, which focus on the company's dual GLP-1/GIP agonist VK2735, are on track for completion. The VANQUISH-1 trial, targeting non-diabetic patients with obesity, is expected to conclude enrollment by the end of the fourth quarter. Meanwhile, VANQUISH-2, which includes diabetic patients, is projected to complete enrollment by the end of the first quarter. In total, the two programs will enroll 5,600 participants.

The company's financial position remains strong, with $715 million in cash reserves, providing approximately two years of operational funding. This financial cushion is expected to support Viking through significant milestones, including the readout of its Phase I maintenance trial for oral and subcutaneous VK2735, and potentially extend to the Phase III VANQUISH trial results.

Industry Interest and Potential Partnerships

The recent acquisition of Metsera by Pfizer for $4.9 billion has sparked speculation about Viking's potential as an acquisition target. Analysts note that Metsera faced competition from seven suitors, indicating strong pharmaceutical industry interest in the GLP-1 space. This has led to suggestions that Viking may be undervalued and could attract strategic interest.

Viking CEO Brian Lian acknowledged the increased focus on MASH and metabolic diseases but maintained that the company's strategy regarding partnerships and commercialization remains unchanged. "We're certainly receptive to outside interest," Lian stated, "but we're prepared to go alone, but we're also prepared to engage with anybody who is interested."

Challenges and Competition in Obesity Treatment

Despite the promising outlook, Viking faces challenges in the competitive landscape of obesity treatments. The company's oral version of VK2735 showed strong efficacy in a Phase II trial, with 12% body weight reduction at 13 weeks. However, safety concerns emerged, with 20% of participants dropping out due to side effects, primarily gastrointestinal issues.

Viking is not alone in facing hurdles in this space. Terns recently announced the discontinuation of its oral GLP-1 drug TERN-601 due to underwhelming weight loss results and safety concerns. In response to these industry-wide challenges, Lian emphasized Viking's efforts to optimize dosing and titration to mitigate side effects associated with VK2735.

As the metabolic disease and obesity treatment landscape continues to evolve, Viking Therapeutics appears well-positioned to capitalize on growing industry interest while navigating the complexities of drug development in this challenging therapeutic area.