Viking signs $150M manufacturing deal with CordenPharma for obesity candidate

Biopharma company Viking Therapeutics announced a multi-year, $150 million manufacturing agreement with CordenPharma for the active pharmaceutical ingredient (API) and final finished product supply for Viking’s VK2735 obesity drug candidate.

Under the agreement, Viking will make prepayments to contract manufacturer CordenPharma totaling $150 million from 2025 to 2028. The deal includes dedicated manufacturing lines and an annual fill-finish capacity of 100 million autoinjectors, 100 million vial-syringes, and more than one billion oral tablets — with the option to expand capacity. 

VK2735, Viking’s dual agonist of the glucagon-like peptide 1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP) receptors, is being developed in oral and subcutaneous formulations for the potential treatment of various metabolic disorders such as obesity. The candidate is currently being evaluated in a Phase 2 oral dosing trial.

Viking said CordenPharma will provide “sufficient long-term supply of both subcutaneous and oral VK2735 product forms to support a potential multi-billion-dollar annual product opportunity,” according to the announcement.

“CordenPharma’s established presence in commercial peptide manufacturing gives us confidence in their ability to deliver supply commensurate with what we anticipate will be significant commercial demand,” Viking CEO Brian Lian said in a statement.

William Blair analyst Andy Hsieh in a Tuesday note to investors said the firm is “bullish” on Viking’s deal with CordenPharma as it “removes one of the major uncertainties, based on our discussion with investors” and “mitigates supply chain risk for VK2735.”

According to Hsieh, the initial terms of the agreement will extend for eight years and is automatically renewed for three-year periods, unless terminated by either Viking or CordenPharma.

Hsieh noted that while Viking’s $150 million in prepayments to CordenPharma “could be viewed as a material capital commitment, the amount will be credited toward future orders.” At the same time, the analyst acknowledged that investors could view the deal as a “negative development with respect to Viking’s takeout prospects; however, we do not share this view.”

Due to the importance of procuring API and final finished product supply for VK2735, Hsieh made the case that “it would be imprudent to delay such discussions even if Viking was theoretically in late-stage discussions with an acquirer.”