The burden-loss trade is alive and well on Wall Street.

Shares of Viking Therapeutics (VKTX) rose as much as 70% early Tuesday after the company reported a phase II trial of its weight-loss treatment reached its primary and secondary endpoints.

The trial showed its weight-loss treatment, VK2735, which is “a dual agonist of the glucagon-like peptide 1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP) receptors,” saw patients lose as much as a placebo-adjusted 13.1% of their body weight after 13 weeks.

The company will now meet with the FDA to debate the following steps in development.

Viking stock has risen sixfold through the last 12 months, and the company’s market cap is now closing in on $7 billion.

Elsewhere on Tuesday, shares of Fractyl Health (GUTS) rose as much as 6% after Bank of America initiated coverage on the stock with a Buy rating and a $26 price goal.

Shares of Fractyl are down about 50% since their public debut earlier this month.

Fractyl is developing diabetes and obesity treatments since the pharmaceutical industry continues to rush toward the prospect unlocked by Novo Nordisk (NVO) and Eli Lilly (LLY).

“We initiate coverage on Fractyl with a Buy and $26 PO,” BofA wrote in its note.

“GUTS is a pre-commercial stage, hybrid medtech/biopharma company that develops treatments for type 2 diabetes (T2D) and obesity. Lead asset Revita (pivotal stage) is a non-invasive endoscopic procedure that restores a component of digestive system (duodenum) to a healthier state for higher and durable glycemic control.

“Follow-on asset Rejuva (preclinical) is a one-time, GLP1 gene therapy goals at remission of diabesity, potentially with higher tolerability than on-market GLP1 drugs. We like GUTS for actionable catalysts with upside potential in 2024-25 eg pivotal data of Revita that will support approval in multi-bn T2D market.”