Viking Therapeutics plunges after oral obesity pill data misses expectations

Shares of drug developer Viking Therapeutics VKTX.O fall 43.6% to $23.72, on track for biggest one-day pct drop on record

Co says its experimental oral obesity drug, VK2735, helped patients lose 12.2% of their body weight on average over 13 weeks and was safe and well-tolerated through 13 weeks of daily dosing

Co says 20% of participants receiving VK2735 discontinued treatment due to side effects, compared with 13% receiving placebo

Analysts had expected weight loss in the range of 10% to 15% on average

*The data "shows efficacy but highlights more challenging tolerability profile than many likely assumed" - BMO Capital Markets

"While efficacy for VK2735 was clear, tolerability issues were similar to or worse than what we have previously seen with oral agents and are clearly a step-down compared to injectable tirzepatide" - brokerage

Including session moves, stock down 38.4% YTD