To The Moon

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Now, $Novo-Nordisk A/S(NVO)$ and $Eli Lilly(LLY)$ are dominating the weight loss market, but a rising biotech star might just give them a run for their money.

$Viking Therapeutics(VKTX)$ is a small but mighty biotech company, focused on developing treatments for metabolic and endocrine disorders. Many other pharma giants have tried and failed to break into this booming market, but Viking seems to be on the right track.

Weeks ago, Viking announced positive results from the Phase II trial of its GLP-1 and GIP dual agonist, VK2735. The hype surrounding this obesity drug candidate has sent Viking's stock soaring!

With this Phase II success, Viking has a few clear options.

First is to quickly move into Phase III trials and work closely with the FDA to bring this obesity drug to market.

But the second, more intriguing option? Viking could be a ripe target for a takeover. $Pfizer(PFE)$ might seem like a perfect fit, given its struggles in the weight loss space.

On paper, it sounds like a match made in heaven: Pfizer's been struggling to make a mark in the weight loss biz. But here's the kicker: if Viking does get acquired, Pfizer might not be the one to do it.

Pfizer just completed its acquisition of $Seagen(SGEN)$ , which is probably a mountain of integration work that'll take years to sort out. Meanwhile, Pfizer's balance sheet is loaded with $30 billion in new debt from the Seagen deal, so they're not in the best financial shape for another takeover right now.