Why Viking’s Weight-Loss Drug News Is Weighing on Eli Lilly, Novo Nordisk Stocks

Eli Lilly (LLY) and Novo Nordisk (NVO) shares mislaid ground, while shares of drugmaker Viking Therapeutics (VKTX) soared successful intraday trading Thursday aft nan institution reported advances successful tests of its weight-loss narcotics that could situation nan power of Novo Nordisk's Wegovy and Eli Lilly's Mounjaro. 

Viking Therapeutics said successful its second-quarter net study Wednesday that nan injectable and oral versions of its weight-loss narcotics are expected to advancement to further stages of tests successful nan 2nd half of nan year.

Weigh-Loss Drug Progress Provides Latest Boost to Viking Stock

The latest shape 2 study for nan injectable type of Viking's weight-loss supplier showed immoderate patients mislaid up to 15% of their baseline assemblage weight complete nan people of a 13-week curen period, Viking said. The institution besides said it expects to schedule a gathering pinch nan Food and Drug Administration (FDA) astir nan study later this year, and shape a shape 3 proceedings pursuing nan meeting.

In a shape 1 proceedings for nan oral type of nan drug, patients mislaid up to conscionable complete 5% of their baseline assemblage weight complete a 28-day people of regular doses. Viking said it plans to schedule a shape 2 trial for nan oral type later this year.

The news sent shares of Viking up complete 33% to $67.46 arsenic of 1 p.m. ET Thursday, successful nan stock's latest boost from weight-loss drugs. The banal more than doubled successful a azygous time successful February pursuing nan results of a erstwhile trial, and roseate astir 17% successful one convention successful March aft Viking disclosed nan results of nan first oral supplier trial. Shares of Viking person much than tripled successful worth since nan commencement of nan year.

Meanwhile, while shares of competing weight-loss drugmakers Eli Lilly and Novo Nordisk fell Thursday. Surging request for weight-loss narcotics for illustration Eli Lilly's Mounjaro and Novo Nordisk's Wegovy has boosted some nan revenue and banal prices of nan companies successful recent quarters, pinch some moving to summation accumulation to beryllium capable to meet nan demand.