Viking Therapeutics shares surge on Pfizer’s drug discontinuation

Investing.com -- Shares of Viking Therapeutics (NASDAQ:VKTX) rose sharply by 17% today, while Eli Lilly (NYSE:LLY) and Novo Nordisk (NYSE:NVO) also saw gains of 1.7% and 4%, respectively. The upward movement in these pharmaceutical stocks comes after Pfizer Inc. (NYSE: NYSE:PFE) announced it would discontinue the development of its obesity drug candidate, danuglipron.

Pfizer’s decision was based on the results from recent dose-optimization studies, which, despite meeting key pharmacokinetic objectives, revealed a case of potential drug-induced liver injury in a participant. Although the frequency of liver enzyme elevations was consistent with approved agents in the class, the incident led to a comprehensive review and subsequent discontinuation of the drug’s development.

The company emphasized the importance of continuing to address cardiovascular and metabolic diseases, including obesity, as areas of significant unmet medical need. Pfizer’s Chief Scientific Officer, Chris Boshoff, expressed disappointment in halting danuglipron’s progress but reaffirmed the company’s commitment to advancing other investigational treatments in its pipeline.

The market’s response to Pfizer’s withdrawal of danuglipron appears to favor Viking Therapeutics, Eli Lilly, and Novo Nordisk, as competition in the GLP-1 receptor agonist space for chronic weight management may be reduced. As a result, investors are showing increased interest in these companies, which could potentially fill the gap left by Pfizer’s exit from this drug category.

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