Viking Therapeutics (VKTX) has not yet commercialized any product, but its lead candidate VK2735 is in two phase 3 trials, one injectable and one oral. Analysts predict the weight loss drug market could approach $100 billion by the end of this decade, a space currently led by Eli Lilly and Novo Nordisk. Last month, Viking completed a secondary offering of common stock and convertible senior notes that raised $575 million to fund VK2735's phase 3 development, priced at $35 per share. The stock fell after the offering amid concerns over dilution and a 16% discount to the prior day's close, and now trades about 23% below $35, under $30. The author considers the current price reasonable given the company's pipeline progress, and notes that clinical trial updates could drive the stock.
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