The competition for weight loss drugs is heating up, with Viking and Astrazeneca's oral weight loss medications able to compete with injectables

The oral weight loss drugs from the two major pharmaceutical companies, Viking and AstraZeneca, have shown impressive weight loss effects, putting pressure on other traditional injectable weight loss drug companies.

Last Sunday, Viking presented research data at the ObesityWeek conference, indicating that in an early study with 92 participants, those who took a 100 mg dose of Viking's pills lost an average of 6.8% of their weight over 28 days, which was better than expected and surpassed the experimental treatments of competitors. In contrast, patients taking the placebo lost an average of 1.4% of their weight.

Even better, Bloomberg analyst Michael Shah stated in a report that the pill has good tolerability with minimal side effects, only causing mild nausea, and patients did not need to stop taking the medication. These results suggest that Viking may enter the mid-stage trial phase in the fourth quarter.

On Monday, November 4th, Eastern Time, AstraZeneca also showcased research findings at the ObesityWeek conference, revealing that trial patients showed good tolerability for their developed oral pill "AZD5004." In an early study with 72 participants, it was found that patients lost an average of 5.8% of their weight after four weeks of treatment with the oral pill. This once-daily medication mimics a gut hormone called GLP-1 to control blood sugar and suppress appetite. The trial indicated that no serious side effects occurred in patients at doses up to 50 mg.

This news caused Viking's stock to initially rise over 8.5% on Monday morning, but it then sharply reversed, dropping nearly 9.3%, while AstraZeneca rose over 3.1% at one point. In contrast, Eli Lilly's stock fell nearly 1.7%, Novo Nordisk's stock dropped over 2.2%, and Pfizer's stock fell nearly 1%.

Analysts pointed out that the simultaneous rise of Viking and AstraZeneca's stocks was due to the potential competition their oral weight loss pills could pose to the best-selling injectable weight loss drugs from Eli Lilly and Novo Nordisk. The growth point for the future weight loss drug market lies in easier-to-take pills, which are not only convenient but may also have fewer side effects. Moreover, pills may encourage patients to adhere to their medication for a longer period, which is a long-term positive factor for sales.

Viking's average weight loss of 6.8% after four weeks of treatment

Public information shows that Viking was founded in 2012, and CEO Brian Lian was previously a scientist at Amgen researching cancer and endocrine diseases before becoming an analyst in the field of diabetes. Viking is also researching drugs for treating alcoholic liver disease and other conditions.

So far this year, Viking's stock price has risen over 290%, as investors have high hopes for its developing oral weight loss drug. Additionally, because Viking's new pill is considered to have enormous potential, it may attract interest from large pharmaceutical companies for acquisition. William Blair analyst Andy Hsieh stated, "Viking's weight loss drug is performing better than expected, increasing the likelihood of large pharmaceutical companies acquiring Viking.""Although we acknowledge that basing investment decisions on the expectation of a potential acquisition is risky, the possibility is still quite significant."

Analysis indicates that the launch of oral medications by Viking and AstraZeneca has intensified the competition between large pharmaceutical companies and small biotech firms in releasing weight loss drugs, as companies are racing to introduce weight loss pills that can attract more users, all wanting a share of the projected $130 billion market by the end of this century.

For example, Novo Nordisk stated that the weight loss effect of their pill is similar to that of their Wegovy injection, but supply is somewhat lagging. Eli Lilly is conducting late-stage clinical trials on its oral medication orforglipron, which, according to mid-term studies published last year, can help obese individuals lose about 15% of their weight within 36 weeks if taken at the maximum daily dose. Other major pharmaceutical companies, such as Pfizer, are also conducting clinical trials for oral GLP-1 weight loss drugs, and their trials have reached more advanced stages.

AstraZeneca Average Weight Loss of 5.8% After Four Weeks

A year ago, AstraZeneca announced that they had acquired this experimental weight loss drug, which only requires taking once a day, from Eccogene for up to $2 billion. AstraZeneca stated at the time that they believed this treatment would have fewer side effects compared to some current injection treatments, such as Eli Lilly's Zepbound and Novo Nordisk's Wegovy. Sharon Barr, Executive Vice President of Biopharmaceutical R&D at AstraZeneca, has stated that they are testing the drug's effects, hoping to complete the trials by the end of 2025.

AstraZeneca is now very confident in their weight loss business. Barr also mentioned that the trial results have given AstraZeneca confidence in the safety and efficacy of this drug, so they decided to advance the drug to the second phase of clinical trials. This trial is expected to be completed by the end of 2025.

Moreover, their experimental weight loss pill AZD5004 has an advantage over competitors' drugs, as it is a small molecule drug that can be used alongside other small molecule drugs. This is important because over 60% of obese or overweight individuals have at least one other health issue, so they may need to take multiple medications simultaneously.

Additionally, another early-stage trial by the company observed 14 patients over 28 days, finding that the AZD5004 pill can be taken before or after meals without the need to be taken on an empty stomach