Shares of Viking Therapeutics surged 31% in early trading Tuesday after the company announced positive topline results from its latest study of VK2735, a candidate designed for both diabetes and obesity. After 21 weeks of treatment, trial participants experienced weight reductions ranging from 16% to 19%, a level of efficacy that rivals comparable products from Eli Lilly and Novo Nordisk.

VK2735 targets the same hormonal receptors as Eli Lilly's Zepbound and Mounjaro, and is formulated as a once-weekly injection. The company is also advancing an oral version of the drug. Meanwhile, Roche's investigational obesity treatment, enicepatide, has also shown clinical progress. In that trial, participants with type 2 diabetes saw an average weight loss of 15.5% over 48 weeks, along with significant improvements in blood sugar levels.

Although Eli Lilly and Novo Nordisk currently hold a commanding lead in the obesity drug market, shares of both companies each declined 1% in the latest trading session.