11:07 AM EDT, 03/11/2025 (MT Newswires) -- (Updates with recent stock price movement in the headline and first paragraph.)

Viking Therapeutics ( VKTX ) shares were down 11% in recent Tuesday trading after the company signed a deal with a contract development and manufacturing organization.

The company said Tuesday it has signed a deal with CordenPharma to manufacture and supply both the active pharmaceutical ingredient and finished product for Viking's VK2735 program for obesity.

Under the terms of the deal, Viking said it will pay $150 million between 2025 and 2028 to CordenPharma, which has committed to provide an annual supply of over 1 billion oral tablets of VK2735 as well as 100 million autoinjectors and 100 million vial and syringe products for the subcutaneous formulation of VK2735.

Viking said it retains ownership of all global rights to VK2735, its investigational dual agonist of the glucagon-like peptide 1 and glucose-dependent insulinotropic polypeptide receptors for metabolic disorders like obesity.

The company said it is conducting a phase 2 oral dosing trial of VK2735 and expects to begin a phase 3 study for the subcutaneous formulation in Q2.

Price: 24.96, Change: -3.00, Percent Change: -10.73