--- title: "1 Beaten-Down Stock That Could Soar by the End of the Year" description: "Viking Therapeutics (VKTX) is navigating a competitive weight loss therapy market dominated by Eli Lilly and Novo Nordisk. Despite a 40% stock drop over the past year due to market volatility, the com" type: "news" locale: "en" url: "https://longbridge.com/en/news/253351930.md" published_at: "2025-08-17T12:59:46.000Z" --- # 1 Beaten-Down Stock That Could Soar by the End of the Year > Viking Therapeutics (VKTX) is navigating a competitive weight loss therapy market dominated by Eli Lilly and Novo Nordisk. Despite a 40% stock drop over the past year due to market volatility, the company is developing promising candidates, including VK2735, currently in phase 3 trials, and an oral version in phase 2. Eli Lilly's recent setback with its oral GLP-1 medicine creates an opportunity for Viking. Investors should consider their risk tolerance before investing, as the stock could soar if clinical results are favorable. Some smaller drugmakers choose to develop medicines for diseases for which there are no therapeutic options. This allows them to avoid direct competition from larger pharmaceutical companies. That's not exactly the strategy **Viking Therapeutics** (VKTX -0.34%) chose. The mid-cap biotech is working on weight loss therapies, an increasingly competitive market dominated by **Eli Lilly** (LLY 2.73%) and **Novo Nordisk**, as well as numerous other well-established players in the industry seeking to enter the space. Going up against these giants is no small challenge, but Viking is, so far, holding its own. And if it can play its cards right, its stock could soar by the end of the year and go on to generate strong returns from then on out. Here's more on Viking Therapeutics. Image source: Getty Images. ## Eli Lilly's setback creates an opportunity Viking Therapeutics' shares soared last year following the release of strong phase 2 data for its subcutaneous weight management candidate, VK2735. The stock has declined significantly since that milestone, although it's not due to anything Viking did wrong. Broader market volatility, combined with long-term shareholders taking some profits, is likely responsible for the stock's 40% drop over the trailing-12-month period. VK2735 is currently in phase 3 studies, but Viking is also developing an oral version of the medicine, which is in phase 2 clinical trials. There is a race to develop a highly effective oral GLP-1 anti-obesity therapy, since the current market leaders are administered via subcutaneous injection. If Viking Therapeutics' oral candidate can impress in mid-stage studies, the stock could soar. That's especially the case since Eli Lilly's investigational oral GLP-1 medicine, orforglipron, failed to perform as well as expected in a phase 3 study in obese or overweight patients who didn't have diabetes. Orforglipron led to a mean weight loss of 12.4% in a 72-week study, which wasn't as impressive as the market wanted. This result paled in comparison to Lilly's injectable Zepbound, which led to an average weight loss of 20.2% in a phase 3 study. Viking Therapeutics' shares jumped on the pharmaceutical giant's bad news, but there's plenty of upside left if its oral weight loss candidate meets Wall Street's expectations. ## It's best to start small Eli Lilly is perceived as the leader in the weight management market. The company's continued dominance in this field was likely somewhat baked into investor expectations, requiring it to deliver outstanding clinical trial results to justify its share price. Viking is a much smaller drugmaker than Lilly, so the market will likely have lower expectations for its data readouts for VK2735. Viking also has several other exciting candidates. The company is working on a drug called VK2809, a potential therapy for metabolic dysfunction-associated steatohepatitis (MASH), which produced solid results in phase 2 studies. There is a vast unmet need in MASH, considering several million people have the disease, yet the U.S. Food and Drug Administration has approved just a single medication for it. Elsewhere, Viking has a next-gen anti-obesity candidate that could soon start human clinical trials. The company has a lot going on, and if VK2735-related developments remain strong through the end of the year, the stock could soar. However, Viking -- like any clinical-stage biotech company -- is a somewhat risky bet. On the one hand, it has generated strong mid-stage data for two separate medicines that address high unmet needs. Its leading candidate, VK2735, has the potential to become a blockbuster; that's impressive. Even so, the stock will plummet if VK2735 encounters clinical setbacks. So, should you buy shares? In my view, it depends on your level of risk tolerance. Risk-averse investors should look elsewhere. If you're comfortable with a bit of volatility, you should seriously consider the stock; however, it would be wise to start by initiating a small position. If the data from the ongoing phase 2 study for oral VK2735 is good, it might be worth adding even more shares thereafter. ### Related Stocks - [LLY.US - Eli Lilly](https://longbridge.com/en/quote/LLY.US.md) - [VKTX.US - Viking Therap](https://longbridge.com/en/quote/VKTX.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 缩表 - “美联储财政部协议” - 降息，这就是沃什的 “阳谋”？ | 沃什认为美联储的资产负债表过于臃肿，建议通过财政部发债将长期国债转向短期国债，以迫使美联储降息。巴克莱的报告指出，美联储可能会放弃资产负债表总额下降的追求，转而通过再投资短期国债来降低投资组合久期。这种策略将期限风险转移给私人市场，导致市场 | [Link](https://longbridge.com/en/news/275547387.md) | | 3.5 亿首付款、总额达 85 亿美元！信达生物与礼来合作布局肿瘤免疫新药研发 | 信达生物与礼来达成突破性合作，将联合开发肿瘤及免疫新药。此次交易预付款 3.5 亿美元，总额最高达 85 亿美元。双方摒弃传统授权，采用从零开始的共同研发模式，标志着中国药企创新力获全球顶尖药企深度认可，开启全球战略协作新篇章。 | [Link](https://longbridge.com/en/news/275269682.md) | | 礼来第四季度营收为 192.9 亿美元，同比增长 43%。预计全年营收为 800 亿至 830 亿美元，市场预期为 777.1 亿美元 | 礼来第四季度营收为 192.9 亿美元，同比增长 43%。预计全年营收为 800 亿至 830 亿美元，市场预期为 777.1 亿美元。 | [Link](https://longbridge.com/en/news/274805260.md) | | 礼来公司声明：Mirikizumab 在中国获批用于治疗中度至重度克罗恩病和溃疡性结肠炎 | 礼来：Mirikizumab 在中国获得批准用于治疗中重度克罗恩病和溃疡性结肠炎 - 公司声明 | [Link](https://longbridge.com/en/news/275551012.md) | | 减肥药销量爆发！礼来 Q4 营收同比大增 43%，净利润增长 50%，2026 年营收指引 800 亿至 830 亿美元 \| 财报见闻 | 得益于 GLP-1 减肥药销量的爆发，礼来四季度营收、利润以及全年指引均超出市场预期。在减肥药双雄的巅峰对决中，礼来似乎已经给出了胜负的答案。诺和诺德此前警告称，受价格战加剧影响，今年销售额可能下滑 13%，而礼来却预计自身销售额将实现高达 | [Link](https://longbridge.com/en/news/274814398.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.