Weight-Loss Drugs: Boon or Bust?

Viking's weight-loss pill fails to meet expectations, causing a 41% share drop. Novo Nordisk's Wegovy gets U.S. approval for a liver condition, boosting shares. The European corporate profit outlook weakens, while U.S. allows emergency animal drug use for screwworms. EliseAI secures funding for healthcare expansion.

Viking Therapeutics announced that its weight-loss pill did not meet the high expectations set by Wall Street, resulting in a significant 41% drop in shares. The drug, tested in a mid-stage trial involving 280 obese and overweight adults, achieved a 12.2% average weight reduction, falling short of the anticipated 15%.

In contrast, Novo Nordisk shares saw an uptick following the U.S. nod for its weight-loss drug Wegovy to treat a liver condition. This development follows a drop in Novo's market value recently and has helped its shares rise by 3.5% as of Monday morning.

Meanwhile, the outlook for European corporate profits has slightly declined, showing a potential 4.6% growth in second-quarter earnings, less than the 4.8% previously expected. Elsewhere, the U.S. expands emergency authorizations for animal drugs to combat potential screwworm infestations, preparing against a threat not encountered in decades.

(With inputs from agencies.)