2026 Could Be a Big Year for Viking Therapeutics. Time to Buy?

Viking Therapeutics (NASDAQ: VKTX) is aiming to join one of the biggest growth industries of the times: the weight loss drug market. People hoping to lose weight have rushed to get in on GLP-1 drugs, a type of product that has proven its efficacy in clinical trials and in the real world over the past few years. Many have become household names, from Eli Lilly's Zepbound to Novo Nordisk's Wegovy.

But those pharma giants may see others join the market in the years to come -- and one serious contender could be Viking. The biotech player's candidate is involved in a phase 3 trial in injectable format, and it plans to soon begin a phase 3 trial for the candidate in oral format.

This year could be a big one for Viking -- does this mean it's time to buy this biotech stock? Let's find out.

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Why are people rushing into GLP-1 drugs?

So, first, let's talk a bit about GLP-1 drugs and why so many people have rushed to get a prescription. These products interact with hormonal pathways involved in appetite control and the management of blood sugar levels. I've spoken with people who take them, and the message is clear: They are easy to administer weekly by injection, so don't interfere with lifestyle, they generally are well tolerated, and they control appetite. And, of course, the weight loss has been impressive.

All of this has made these drugs immensely popular, and at times, demand has even exceeded supply. Looking ahead, analysts expect the obesity drug market to reach nearly $100 billion by the end of the decade. All of this suggests there is plenty of room for today's leaders as well as new entrants to coexist -- and each generate growth.

Viking's candidate, like Eli Lilly's weight loss drugs, is a dual GIP/GLP-1 receptor agonist, meaning it interacts with two hormonal pathways instead of just one. The phase 3 study of VK2735 in injectable format is ongoing, and a phase 3 study of the oral format is scheduled to begin in the third quarter of this year. Viking also is conducting a phase 1 maintenance dosing study involving both injectable and oral formats -- the idea is to develop dosing options for ongoing maintenance use of the potential drug. Results from this trial are expected during the third quarter of this year.

A new clinical trial ahead

On top of this, Viking also is on the road to launching clinical trials for another candidate, a dual amylin and calcitonin receptor agonist. In the first quarter, the biotech company aims to file a request to begin these studies.

Amylin and calcitonin receptors play important roles in metabolism, making them attractive targets in the quest for new weight loss drugs. Viking hopes this potential product may be used as a stand-alone treatment for those who aren't candidates for GLP-1 drugs, as well as in combination with GLP-1 drugs.

All of this means this year could be a big one for Viking, with the release of data, progress in late-stage clinical trials, and the launch of a trial for a new weight loss candidate. The trial launch is particularly interesting because it shows that Viking isn't relying on a single GLP-1 candidate; instead, it's innovating to build a pipeline that may support long-term growth.

Consider your feelings about risk

Does this mean now is the right time to buy Viking stock? This depends on your comfort with risk. Viking doesn't yet have products on the market, and a lot is riding on the outcome of trials for VK2735. There's reason to be optimistic about this candidate based on the data we've seen so far, but in drug development, the risk isn't eliminated until the candidate wraps up trials and receives a nod from the U.S. Food and Drug Administration. So cautious investors might hold off on investing in this clinical stage biotech right now.

But if you don't mind this risk that comes with drug development, now is a great time to get in on Viking stock. This year may be a good one for the company -- but if all goes well in clinical development, the long term may be even better.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool recommends Novo Nordisk and Viking Therapeutics. The Motley Fool has a disclosure policy.