Eli Lilly (LLY) and Novo Nordisk (NVO) have seen a surge in their stock prices over the past year, thanks to the success of their blockbuster GLP-1 drugs for treating obesity. Both companies have experienced significant growth, with Lilly’s shares up 72% and Novo’s up 44%. Novo Nordisk is currently the largest company in Europe by market cap, while Lilly ranks eighth among US companies with a market cap of $900 billion.

Investors have been drawn to these companies due to promising research that suggests expanded indications for their drugs beyond weight loss and diabetes treatment. This has led investors to search for the next big breakthrough in the space, with many eyeing Viking Therapeutics (VKTX) as a potential contender.

RSE Ventures CEO Matt Higgins recently made the case for Viking Therapeutics on a segment of Good Buy or Goodbye, highlighting the company’s innovative approach to developing GLP-1 drugs. Viking is working on two products – a monthly injection and a pill – that have shown promising results in early studies. This has led to a nearly 250% increase in Viking’s stock price this year, despite the company not yet generating any revenue.

One of the key appeals of Viking Therapeutics is its potential for acquisition, with Higgins estimating a takeout value of $15 billion, double its current market cap. Additionally, the company is expected to provide updates on its GLP-1 research at a conference in November, which could serve as a catalyst for further growth.

Despite its smaller size and lack of revenue, Higgins believes that Viking Therapeutics still has room for growth, with potential for significant upside in the future. As investors continue to search for the next big player in the obesity treatment market, Viking Therapeutics remains a top contender to watch.

In conclusion, the success of Eli Lilly and Novo Nordisk in the GLP-1 space has paved the way for smaller players like Viking Therapeutics to make a name for themselves. With promising research and potential for acquisition, Viking Therapeutics is poised for future growth and could be the next hot stock in the obesity treatment market.