Viking Therapeutics Inc ( VKTX ) shares are rising Thursday after the biotech company announced plans to advance its experimental weight loss drug to late-stage trials.

What Happened: After the market close on Wednesday, Viking Therapeutics ( VKTX ) reported financial results for the second quarter that included an update on VK2735, the lead candidate of the company’s unique series of novel dual agonists of the glucagon-like peptide 1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP) receptors for the potential treatment of obesity.

Viking said earlier this year that it expected to start another mid-stage trial for VK2735, but announced late Wednesday that it would move the weekly injection into a Phase 3 trial. Viking shares popped on the news, while shares of Eli Lilly And Co ( LLY ) and Novo Nordisk A/S ( NVO ) fell. Viking is one of several companies racing to capture market share in the GLP-1 market, currently being led by Lilly and Novo Nordisk ( NVO ).

Check This Out: Viking Therapeutics Stock Climbs On Q2 EPS Beat

Viking said it received feedback from the U.S. Food and Drug Administration (FDA) based on a Type C meeting packet it submitted to the agency earlier this year. After reviewing the feedback, the company decided to advance VK2735 into late-stage trials for obesity.

“The Phase 2 VENTURE study of VK2735 in obesity demonstrated up to an approximately 15% reduction in body weight from baseline following 13 weeks of dosing, as well as promising safety and tolerability.  Following receipt of written feedback from an FDA Type C meeting, we are advancing this compound into Phase 3 development,” said Brian Lian, CEO of Viking Therapeutics ( VKTX ).

Viking expects to schedule an end-of-Phase 2 meeting with the FDA later this year. The company noted that details on the Phase 3 trial design and timing will be disclosed following the end-of-Phase 2 meeting.

On the conference call late Wednesday, Lian said the company plans to test VK2735 as a monthly injection in future studies. The company also said the oral tablet version of VK2735 demonstrated encouraging signs in early trials, with up to 5.3% weight loss after 28 days. Viking expects to initiate a Phase 2 trial for the oral program later this year.

Viking reported an earnings loss of 20 cents per share for the second quarter, beating analyst estimates for a loss of 27 cents per share. Analysts at HC Wainwright reiterated Buy on Thursday with a price target of $90, while Raymond James maintained a Strong Buy and lifted its target to $118.

VKTX Price Action: Viking Therapeutics ( VKTX ) shares were up 30% at $65.68 at the time of publication, according to Benzinga Pro.

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