Viking Therapeutics (NASDAQ:VKTX) shares tumbled 43% on Tuesday following the release of data from its Phase 2a Venture Oral weight loss trial showing strong efficacy but that raised tolerability concerns.
The study showed that participants taking VK-2735 achieved placebo-adjusted weight losses of approximately 7.5% at 60 mg, 10% at 90 mg, and 11% at 120 mg over 13 weeks.
However, tolerability concerns weighed on investor sentiment. About 20% of patients discontinued treatment, compared with 13% in the placebo group.
Higher doses were associated with vomiting in 20% to 35% of participants, versus roughly 10% for placebo, while nausea was reported in 58% of participants compared with 48% on placebo.
The company said 99% of adverse events were mild or moderate.
Analysts at JPMorgan noted that VK-2735 demonstrated strong efficacy with a manageable safety profile, particularly if an optimized titration approach is used.