Is Viking Therapeutics a Top Takeover Target?

Viking Therapeutics (NASDAQ: VKTX) increasingly looks like an acquisition candidate in biotech. But why?

It's because large pharmaceutical companies are desperate to secure obesity drug exposure, and Viking controls one of the more advanced independent GLP-1/GIP programs still available.

Its lead obesity candidate, VK2735, is currently being developed in both injectable and oral formulations. The company's Phase 3 VANQUISH obesity studies are already fully enrolled, while management expects to initiate Phase 3 trials for the oral tablet later this year.

The data for Viking's drug pipeline is strong

In Viking's recent Phase 2 oral obesity study, patients achieved an average weight loss of up to 12.2% after 13 weeks, with no plateau observed during the trial. Earlier Phase 2 data involving the injectable version demonstrated up to 14.7% weight loss after 13 weeks.

Image source: Getty Images.

These results matter because the obesity market is becoming one of the largest pharmaceutical opportunities in decades.

Analysts widely expect GLP-1 and dual agonist obesity therapies to eventually generate well over $100 billion annually. Eli Lilly and Novo Nordisk are already generating tens of billions in revenue from obesity and diabetes drugs like Zepbound and Wegovy.

Here's the rub

For large pharma companies, there aren't many late-stage obesity assets left to buy.

That is where Viking becomes interesting. Unlike many smaller obesity drug developers, Viking still controls both injectable and oral versions of the same active molecule. Management also continues emphasizing potential maintenance dosing opportunities and additional metabolic indications beyond obesity itself.

And financially, the company is relatively healthy for biotech stocks at this stage. Viking ended Q1 2026 with roughly $603 million in cash and investments, which management believes should fund operations into 2028. That reduces immediate financing pressure and gives the company flexibility during partnership or acquisition negotiations.

Of course, Viking still has no approved products and essentially no meaningful revenue. Investors are valuing the company almost entirely on the future commercial potential of VK2735. Still, at recent prices near roughly $30 per share, Viking's market capitalization remains dramatically below the valuations currently attached to large obesity franchises.

Wall Street analyst price targets currently hover around $95 per share if VK2735 continues producing competitive obesity data. The stock currently trades around $30 a share.

Acquisition arguments make sense

If a larger pharmaceutical company believes VK2735 can eventually compete meaningfully in obesity, diabetes, or maintenance therapy markets, buying Viking outright could cost far less than waiting several years while the asset continues advancing toward commercialization.

That does not guarantee a deal will happen, though.

Large pharmaceutical acquisitions are notoriously unpredictable, and obesity drug competition is becoming increasingly crowded. Viking also still faces major execution risks involving manufacturing scale-up, Phase 3 outcomes, long-term safety data, and eventual payer reimbursement.

But, in quantitative terms, the logic behind the takeover speculation is not difficult to understand.

Viking controls a late-stage obesity asset with strong efficacy data, oral and injectable formulations, a relatively clean balance sheet, and a market value that still remains relatively small compared to the long-term revenue potential investors believe modern obesity therapies may eventually generate.

Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly. The Motley Fool recommends Novo Nordisk and Viking Therapeutics. The Motley Fool has a disclosure policy.