Eli Lilly and Company ( LLY ) stock is trading lower on Thursday after Viking Therapeutics, Inc. ( VKTX ) announced the advancement of its novel treatment for obesity, VK2735.

The Details: Viking is advancing the injectable form of VK2735 to Phase 3 after receiving written feedback from an FDA Type C meeting. Also, the Phase 2 venture study of the drug yielded promising results.

VK2735 demonstrated an approximately 15% reduction in body weight from baseline following 13 weeks of treatment. The company anticipates scheduling an end-of-Phase 2 meeting with the FDA later this year.

In addition, the Phase 1 study for the oral formulation of VK2735 demonstrated positive results. Participants reported a mean weight loss of up to 5.3% from baseline following 28 days of daily oral dosing. The company expects to start a Phase 2 study of this formulation during the fourth quarter of 2024.

Both forms of the new pharmaceutical appeared to be safe and well tolerated.

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LLY Price Action: As of Thursday morning, Eli Lilly ( LLY ) shares are trading 4.19% lower at $823.87 per data from Benzinga Pro.

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