Aug. 20 at 3:24 PM
Mizuho reit'd
$TERN Outperform/
$14:
Yesterday, Viking Therapeutics (
$VKTX, NC) announced 13-week P2 data for VK2735, an oral GIP/GLP-1-based candidate for obesity.
Though the study hit on the primary endpoint of weight loss for each dose tested,
$VKTX shares closed -42% (vs. -2% XBI). Disappointment, we believe, was based primarily on '2735's tolerability profile, which included very high rates of vomiting at the highest doses, and high discontinuation rates.
Bigger picture,
$VKTX's data for '2735 marks a second consecutive set of disappointing data for an oral GLP-1-based candidate for obesity (following recently reported data for Eli Lilly's (
$LLY, NC) orforglipron).
Though questions may emerge on
(1) the competitive profiles of oral GLP-1's vs. injectable GLP-1's and
(2) their potential positioning in the market, we continue to see an opportunity for TERN-601, for which key P2 data (expected in 4Q25) could show
$TERN's oral GLP-1 to be differentiated, particularly on tolerability.
$GPCR