Viking Therapeutics Stock Surges Nearly 30% Following Weight Loss Drug Milestone

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Viking Therapeutics saw its stock jump by 28% on Thursday after the company announced it would be advancing its experimental weight loss injection, VK2735, into a late-stage trial earlier than anticipated. This move positions Viking closer to entering the lucrative GLP-1 market, which analysts project could grow to $150 billion by the end of the decade.

Viking’s accelerated timeline was influenced by feedback from the Food and Drug Administration (FDA), allowing the San Diego-based biotech firm to bypass an additional mid-stage trial. The company plans to meet with the FDA in the fourth quarter to finalize the design and timing of the phase three trial, potentially shaving a year off the drug’s development timeline. Analysts now estimate the drug could launch as early as 2029.

VK2735, a weekly injection that targets GLP-1 and GIP hormones, demonstrated promising results in a phase two trial, with patients experiencing up to 14.7% body weight loss after 13 weeks. Viking also plans to test a monthly version of the injection, which could offer a more convenient alternative to Eli Lilly’s Zepbound and Novo Nordisk’s Wegovy, both of which are administered weekly.

In response to Viking’s announcement, shares of major competitors Eli Lilly and Novo Nordisk closed lower, down 4% and 3% respectively, reflecting market concerns over potential new competition in the weight loss and diabetes treatment space.

Viking Therapeutics is also exploring an oral version of VK2735, which showed a 3.3% weight loss compared to a placebo in an early-stage trial. As Viking pushes forward, its entry into the GLP-1 market could intensify competition among drugmakers vying for a share of this rapidly expanding sector.

 

Eli Lilly’s Q2 Earnings Surpass Expectations, Raises Full-Year Outlook

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Eli Lilly reported stellar second-quarter earnings, significantly exceeding market expectations, driven by robust sales of its diabetes drug Mounjaro and weight loss injection Zepbound. The pharmaceutical giant raised its full-year revenue forecast by $3 billion, now expecting between $45.4 billion and $46.6 billion, while also increasing its adjusted earnings guidance to a range of $16.10 to $16.60 per share.

The company’s performance was primarily bolstered by the increased demand for Mounjaro and Zepbound, which together have seen sales soar as supply constraints begin to ease. Despite previous shortages, Eli Lilly’s recent expansion in production capacity has improved the availability of these drugs in the U.S., contributing to the positive financial results. Zepbound, in its second full quarter on the U.S. market, generated $1.24 billion in sales, outperforming analyst expectations. Similarly, Mounjaro brought in $3.09 billion, more than triple the revenue from the same period last year.

CEO David Ricks noted that the company has ramped up its manufacturing efforts, including building six new plants and hiring thousands of workers to meet the growing demand. He also mentioned that Eli Lilly is working on developing more convenient weight loss pills to complement its existing injectable treatments.

Eli Lilly’s shares rose by more than 7% following the earnings announcement, continuing a strong upward trend that has seen the stock gain over 30% this year. The company’s market cap now exceeds $730 billion, making it the largest pharmaceutical firm based in the U.S. This success contrasts with competitor Novo Nordisk, which recently reported weaker-than-expected sales for its similar drugs due to pricing pressures.

 

Bristol Myers Squibb Beats Earnings Estimates and Raises Outlook Amid Cost-Cutting Measures

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Bristol Myers Squibb reported strong second-quarter earnings, surpassing Wall Street expectations and raising its full-year guidance as part of its broader strategy to cut costs and reinvest in key drug brands and R&D programs. The pharmaceutical giant has outlined plans to reduce $1.5 billion in expenses by 2025, which includes laying off over 2,000 employees and consolidating its sites.

Key Financial Highlights:

  • Earnings per share: Adjusted EPS of $2.07, compared to an expected loss of $1.63.
  • Revenue: $12.2 billion, up 9% year-over-year, versus the expected $11.55 billion.
  • Net income: $1.68 billion, or 83 cents per share, down from $2.07 billion, or 99 cents per share, in the prior year.

Guidance Update:

  • Full-year revenue forecast: Now projected to increase at the “upper end” of the low single-digit range, up from a low single-digit increase.
  • Full-year adjusted earnings guidance: Raised to 60-90 cents per share, up from the previous forecast of 40-70 cents per share.

Shares of Bristol Myers rose nearly 8% following the earnings report.

Performance Drivers:

  • Eliquis: The blockbuster blood thinner recorded $3.42 billion in sales, a 7% increase year-over-year, aligning with analyst expectations. Eliquis, which Bristol Myers co-owns with Pfizer, is anticipated to lose market exclusivity by 2028.
  • Revlimid: Despite facing competition from generics, the blood cancer drug brought in $1.35 billion in sales, surpassing the estimated $1.09 billion.
  • Opdivo: The cancer drug generated $2.39 billion in sales, exceeding the expected $2.29 billion.

Growth Portfolio:

  • Reblozyl: Sales were above analysts’ expectations, contributing significantly to the company’s growth.
  • Opdualag and Camzyos: Both drugs, along with Opdivo, drove revenue growth within the portfolio.
  • Abecma: The cell therapy for multiple myeloma recorded $95 million in sales, close to the expected $95.8 million.

Bristol Myers continues to face pressure to innovate and introduce new drugs to compensate for revenue losses from key treatments like Revlimid, Eliquis, and Opdivo, which will eventually lose their market exclusivity.

The company’s proactive measures to cut costs and reinvest in strategic areas underscore its commitment to sustaining growth and competitiveness in the pharmaceutical industry.