Should You Buy Viking Therapeutics Before Nov. 5?

Viking Therapeutics (NASDAQ: VKTX) leaped onto center stage early last year when it announced promising news about a candidate addressing an area of soaring demand: weight loss. The biotech then said its weight loss candidate, VK2735, met the goals of its phase 2 study. Investors realized it would be continuing into later-stage trials -- and the stock price surged more than 120% in one trading session.

Viking remains on track, with the injectable candidate in phase 3 trials and an oral version now in phase 2. As for the stock price, it lost momentum and fell 47% over the past year. But in recent times, the positive momentum has gained some ground. The shares have climbed about 16% over the past three months.

Now, heading into the first week of November, Viking faces a couple of potential catalysts. Should you buy the stock before Nov. 5 to possibly benefit? Let's find out.

Image source: Getty Images.

Viking's weight loss candidate

First, let's take a quick look at Viking's ups and downs over the past year or so. The company's VK2735 falls into the same category of drugs as those dominating the weight loss market today. These are GLP-1 receptor agonists and dual GIP/GLP-1 receptor agonists such as those made by pharma giants Novo Nordisk and Eli Lilly. These types of drugs act on hormones involved in the digestion process and, as a result, help control blood sugar levels and appetite.

Though Novo Nordisk and Lilly already dominate the market, demand is so great for these products that there's room for others to enter -- and potentially generate blockbuster revenue down the road. Viking, with a candidate in phase 3 trials right now, could reach the finish line within the next few years if all goes smoothly. The candidate in its phase 2 study showed up to 13.1% average weight loss after 13 weeks -- and researchers didn't observe a plateau, which means patients may continue to lose weight after that period.

Viking versus Novo Nordisk and Eli Lilly

It's impossible to compare Viking's candidate with the Novo Nordisk and Lilly drugs since each trial design is different -- and the pharmaceutical companies' drugs today are being used in the real world. But Viking's trial results are solid and suggest it could clearly find a spot in the weight loss market -- a market that analysts say may approach $100 billion by the end of this decade.

Though Viking shares have declined from their peak and spent some time in the doldrums, this isn't based on any bad news from the company. Reasons for the stock price movement could be many, from some investors locking in profits to disappointment that the company hasn't been acquired by a bigger player seeking access to the obesity market. The positive point here is that these reasons don't support a sell case for this stock.

Now, let's consider the potential catalysts coming up this week -- and whether you should buy the stock before Nov. 5.

Presentations this week

Viking is set to make poster presentations about VK2735 at two medical conferences this week. At ObesityWeek 2025, the company will make two poster presentations, scheduled for Nov. 5 and 6. One will cover how VK2735 impacted prediabetes and metabolic syndrome in the phase 2 study, and the other will detail the design of the company's phase 3 study in patients with obesity and at least one weight-linked health problem.

Later in the week, at the American Heart Association Scientific Sessions 2025, Viking's poster presentations will feature the design of the phase 3 study in type 2 diabetes patients who are also overweight and a look at the company's research into the frequency of cardiometabolic conditions across body mass index levels.

The data could reinforce the importance of VK2735 and other drugs in its class, and that may support optimism about the candidate and Viking in general. Weight loss drugs linked to the reduction of other health problems have an easier road to reimbursement, so these observations shouldn't be overlooked.

Still, since this isn't a trial report or update like the one that drove massive gains early last year, I wouldn't expect enormous stock price movement.

All this means that Viking is a great biotech buy -- its candidate is promising, you can benefit from getting in on the dip, and momentum has been picking up. But you don't have to rush to scoop up this player before Nov. 5. Instead, you can take your time and leisurely build up a position.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool recommends Novo Nordisk and Viking Therapeutics. The Motley Fool has a disclosure policy.