The market may have been too quick to dismiss this biotech's pipeline prospects after a recent trial result.

The market was less than impressed with the top-line results from Viking Therapeutics' (VKTX 1.73%) phase 2 trial of an oral formulation of its anti-obesity drug VK2735. The disappointment created the sense that the stock lacks any near-term catalysts -- phase 3 results from VK2735 in subcutaneous (injection) form aren't likely until 2027 -- and that the excitement around the stock was primarily centered on the oral formulation.

However, that reaction may prove too hasty, and there's still time to buy into the healthcare stock.

The phase 2 Venture oral dosing trial demonstrated impressive efficacy. However, investors were left disappointed by the safety and tolerability data, particularly the 20% rate of discontinuation due to adverse events. This is a sensitive issue here, particularly as Pfizer discontinued development of an oral weight loss drug in the same class that also had disappointing tolerability data in a trial.

Discontinuation rates due to adverse effects in the Venture trial were higher than those in treatment groups in phase 3 trials of oral weight loss drugs by Eli Lilly and Novo Nordisk.

Data sources: Viking Therapeutics, Eli Lilly, Physicians Academy for Cardiovascular Education. *At highest dosage

However, a larger pharmaceutical company may be interested in acquiring Viking or partnering with it to develop VK2735 in oral form and help it through phase 3 testing, or, alternatively, take it to phase 3 after optimizing the dosage. Or, it could be used as a maintenance therapy for patients who have already lost weight through treatment.

Viking may have more options than the market thinks.