BUZZ-Viking set to double in 'challenging' year for obesity drug developers

Updates

Viking Therapeutics' VKTX.O shares have more than doubled this year, on track for a third successive year of gains

Shares of other smaller obesity drug developers such as Structure Therapeutics GPCR.O, Altimmune ALT.O and Amgen AMGN.O are set to end the year in the red

BMO Capital analysts termed 2024 a "challenging year for obesity trade" - as investors previously got significant returns by banking on names such as VKTX, GPCR and ALT that were entering the weight-loss space

Brokerage says while obesity remains an "enormous" long-term revenue opportunity, investors have become more selective and focus on "clearly differentiated" products

In November, VKTX reported promising data of its oral drug candidate, VK2735, but analysts raised concerns about its ability to mass produce the treatment

Data from Amgen's closely-watched weight-loss drug MariTide failed to impress investors — and wiped off about $7 bln from the company's market cap in November

Stock has declined 9.5% this year vs a gain of about 10% last year

Structure Therapeutics' oral obesity drug surpassed Wall Street expectations as it helped patients reduce weight by 6.2% on average in a mid-stage study

Stock has fallen 34% this year on concerns about competition from Roche's ROG.S oral drug - but mid-stage data in 2025 is expected to be "highly influential" in determining the company's path forward

Altimmune is down 37% this year after falling 32% in 2023; company's obesity drug, pemvidutide, is currently in late-stage study

(Reporting by Bhanvi Satija in Bengaluru)

((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91 9873062788;))