Raphael Stevens

American said 80% of 2024 revenue will be driven by its loyalty program and passengers who buy tickets that cost more than the cheapest seats.
The carrier is planning to expand its domestic first-class seats on older aircraft.
The airline declined to provide profit or revenue forecasts for the first quarter or full year.

A Boeing 737 passenger aircraft of American Airlines arrives from Austin at JFK International Airport in New York as the Manhattan skyline looms in the background on February 7, 2024.
Charly Triballeau | Afp | Getty Images

American Airlines said Monday that 80% of its revenue this year will come from loyalty program members and passengers who buy more expensive tickets, up from a 70% share in 2017.
American and other carriers have poured billions of dollars into new cabins, lounges and onboard upgrades to cater to high-spending travelers. American’s rival, Delta Air Lines, has repeatedly said that growth in premium revenue, which it considers tickets for extra legroom seats and higher-end cabins, has become a bigger share of its overall sales and is growing faster than ticket sales in the coach cabin.

American earlier Monday said that it was ordering 260 new Boeing, Airbus and Embraer planes to revamp its fleet and that it would retrofit older Airbus planes to increase the size of their first-class cabins.
American’s revenue forecast is part of its first investor day in more than six years. It considers “premium content” tickets that cost more than the cheapest offering. The Fort Worth, Texas-based airline said it expects to grow pretax margins in the coming years and chip away at its debt load.
The carrier is in the process of renegotiating its credit card agreements with its partners, Citi and Barclays. Airlines make billions of dollars a year by selling frequent flyer miles to banks for their co-brand cards or other loyalty credit cards.
American and other airlines have changed their loyalty programs to reward customers based on how much they spend instead of just how much, and how far, they fly. Over the years they have required higher spending to reach elite status.
Vasu Raja, American’s chief commercial officer, said Monday that a renegotiation of the contracts would increase revenue for American.

“If you if you were to ask any of our card partners, they have very few cards, if any, in their portfolio that are exhibiting the kind growth in spend per active account and total acquisition growth as well as what ours has done,” Raja said during the investor day presentation.
The carrier declined on Monday to provide profit or revenue forecasts for the first quarter or full year. Analysts polled by LSEG, formerly known as Refinitiv, are projecting 2024 earnings per share of $2.56 and revenue of $54.97 billion.
American shares fell more than 5% on Monday.
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The owners of this $24 million listing in Delray Beach, Florida, are looking to surpass the local record for price per square foot by more than 40%.
The mansion is located in Stone Creek Ranch, a gated community that’s home to billionaire hedge fund manager Steven Cohen, NFL star Khalil Mack and singer-songwriter Romeo Santos.
The average price per square foot of a mansion in Delray Beach has more than doubled in just five years.

The owners of this Florida mansion are asking for $24 million for their almost 11,500 square-foot residence inside one of the most expensive gated communities in Delray Beach, Florida.
The price tag puts the home, known as Villa Ananda, at a price per square foot of almost $2,100, which is well beyond record-breaking territory for a non-oceanfront home in the town.

Aerial view of Villa Ananda and the man-made lake that wraps around the estate rear garden.
Daniel Petroni Photography

“As long as affluent clientele regard Florida as a haven for lifestyle and tax benefits, the ultra luxury real estate market will flourish,” listing broker Senada Adzem told CNBC.
Over the past five years, the Delray Beach market has more than flourished — it has skyrocketed. Since 2018, the average price per square foot of a luxury home — representing the top 10% of sales — in Delray Beach has more than doubled from $416 to almost $840, according to the Elliman Report.
The 102% rise in Delray Beach is even more impressive when you consider it outperformed both the Miami coastal mainland, which saw an 86% increase in luxury price per square foot, and the Manhattan, New York, market where the average price per square foot of a luxury home declined 2%.

Villa Ananda’s living area is flanked by a sleek gray and white kitchen on one side and a wall of wine on the other.
Daniel Petroni Photography

The average luxury home sale in Delray Beach has also seen a dramatic rise, increasing 90% from $2 million in 2018 to $3.8 million in the last quarter of 2023.
“People tend to think of Miami and Palm Beach when the subject turns to high-end South Florida real estate,” Adzem told CNBC. “But Delray Beach is, without question, one of the region’s premier luxury residential markets.”

Many of the town’s high-net-worth residents have been drawn to an exclusive enclave called Stone Creek Ranch. The gated community is home to billionaire hedge fund manager Steve Cohen; National Football League star Khalil Mack; Gerry Smith, CEO of ODP, the parent company of Office Depot; and singer-songwriter Romeo Santos, to name a few.
Hewlett Packard Enterprise CEO Antonio Neri purchased a home here back in 2019 for $7.5 million. He sold it in 2022 for $14 million, an almost 87% increase in under three years. Both deals were brokered by Adzem.

16141 Quiet Vista in Stone Creek Ranch was purchased by HP Enterprise CEO Antonio Neri for $7.5M who sold it three years later for a hefty profit.
Daniel Petroni

“I purchased the home because I loved it and the neighborhood. It also turned out to be an extraordinary investment,” Neri told CNBC.
Just last year, the 37-residence community saw its priciest sale to date when a 17,800 square-foot mansion at 9200 Rockybrook traded for $26 million, or about $1,460 per square foot, in a deal that was also brokered by Adzem.

Villa Ananda’s entrance is flanked by mature Italian Cypress trees.
Daniel Petroni Photography

While her latest listing, 9303 Hawk Shadow Lane, isn’t the most expensive home to hit the market here, at almost $2,100 a square foot, it would be the highest price per square foot ever achieved in Stone Creek Ranch, surpassing the previous record by more than 40%.
“Trophy properties have gained momentum in the South Florida market over the past three years — for tax benefits, for safety reasons and because of the pandemic,” Adzem told CNBC.
The real estate agent knows this high-end neighborhood well. Over the past four years, she has sold five properties here, twice each, and brokered more than $136 million in transactions — all of them within just 500 meters of her latest listing.

An aerial view of the Rockybrook Estate in Delray Beach, Florida.
Douglas Elliman

While buyers-turned-sellers, like Neri, have turned hefty profits in a short time, Adzem believes the market is still trending in the right direction. Limited supply helps.
“The high demand for estates within Stone Creek Ranch, with only 37 multimillion-dollar properties available, further underscores this market dynamic,” said Adzem.

Here’s a look inside the 6 bedroom, 10 bathroom Villa Ananda:

Aerial view of 9303 Hawk Shadow Lane in Delray Beach.
Daniel Petroni Photography

The one-story residence sits on 2.5 acres surrounded by a man-made lake.
Missing from the property’s lush green landscape are Florida’s ubiquitous palm trees. There’s not a single one on the estate. Instead, the land is peppered with towering Italian Cypress trees, bougainvillea, rose bushes, pines and vegetation chosen for its resemblance to olive trees.
Adzem tells CNBC that landscape architect Krent Wieland and the owners opted for greenery that would make the residence feel less like a Florida mansion and more like a luxurious villa in the Italian countryside.

The view from Villa Ananda’s loggia includes manicured gardens, a saltwater pool and a 20-person hot tub.
Daniel Petroni Photography

“Every detail of their surroundings was meticulously curated, inspired by the awe-inspiring vistas of southern Italy’s countryside,” said Adzem.

The home’s loggia includes a kitchen, bar, lounge, dining area and fireplace.
Daniel Petroni Photography

Villa Ananda’s primary suite spans about 3,500 square feet with two sleeping areas. This is larger of the suite’s two bedrooms.
Daniel Petroni Photography

According to Adzem, Villa Ananda’s primary suite spans more than 3,500 square feet, with two home offices, two walk-in closets, a pair of baths and a wellness area with an infrared sauna and massage table.

One of the two baths in the primary suite.
Daniel Petroni Photography

One of the primary suite’s two home offices.
Daniel Petroni Photography

Interiors are designed by Inson Dubois Wood with bespoke furniture by Studio Liaigre, Adzem tells CNBC, and while the furnishings are not included in the asking price, they are negotiable.

One of the primary suite’s two walk-in closets.
Daniel Petroni Photography

Custom chandeliers in the living room, formal dining room, baths and even closets are crafted from a pearly-white rock called Selenite, a crystal that’s formed when calcium-rich saltwater evaporates.

The dining area off the kitchen.
Daniel Petroni Photography

There’s dining for twelve off the kitchen, plus a separate formal dining room that can accommodate 10 guests.

The formal dining room.
Daniel Petroni Photography

The kitchen’s waterfall countertops are crafted from a white Calacatta Crema marble, and the wood floors are washed in a soft gray hue that resembles weathered drift wood.

The kitchen.
Daniel Petroni Photography

Outside, there’s a saltwater pool, 20-person hot tub, zen garden, fire features, a fruit tree orchard and rose garden.

A view of the home’s saltwater pool and stone sundeck.
Daniel Petroni Photography

The stone driveway leads to a parking courtyard flanked by air-conditioned garage areas for nine cars.

The home has air-conditioned parking for nine cars.
Daniel Petroni Photography More

Ford Motor’s U.S. sales jumped 10.5% last month compared with February 2023, led by increases in its hybrid and all-electric vehicles sales.
The spike in hybrid sales is part of Ford’s plan to double down on the technology. THe company said hybrid sales totaled 12,045 in February, including 6,463 units of its small Maverick Hybrid pickup.
Despite the increases in hybrids and EVs, 89.5% of Ford’s sales last month were traditional cars and trucks.

A 2022 Ford Motor Co. Maverick compact pickup truck during the Washington Auto Show in Washington, D.C., on Friday, Jan. 21, 2022.
Al Drago | Bloomberg | Getty Images

DETROIT – Ford Motor’s U.S. sales jumped 10.5% last month compared with February 2023, led by increases in its hybrid and all-electric vehicles sales.
The Detroit automaker Monday reported sales of 174,192 cars and trucks for February. The results included an 81% jump in EV sales and roughly 32% uptick in hybrid models. Sales of traditional internal combustion engines also increased, up 7.5% from the same month a year earlier.

The spike in hybrid sales is part of Ford’s plan to double down on the technology. The company said hybrid sales totaled 12,045 in February, including 6,463 units of its small Maverick Hybrid pickup.
Sales of EVs for Ford have fluctuated month to month based on demand and pricing. Sales of Ford’s all-electric vehicles last month were up across the board, including a 64.3% increase in its Mustang Mach-E crossover and a nearly doubling in sales of the all-electric F-150 Lightning pickup.
Despite the increases in hybrids and EVs, 89.5% of Ford’s sales last month were traditional cars and trucks in February.
Sales of Ford’s highly profitable F-Series pickups fell by 5.8% last month to 51,829 units. Shipments of new 2024 models of the pickup were delayed due to an undisclosed quality issue, Automotive News reported last month.
Amid quality and warranty issues, Ford CEO Jim Farley has instituted more stringent testing and quality checks during new vehicle launches.

Ford reported total year-to-date sales through February were 311,325 units, a 6.6% increase compared with the same time period a year earlier.
Shares of Ford were up more than 4% during trading Monday morning. Rivals General Motors and Stellantis, neither of which reports monthly sales, were up about 1% each.
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Denis Villeneuve’s “Dune: Part Two” opened with an estimated $81.5 million at the box office, the highest of any film released so far in 2024.
The Warner Bros. and Legendary Entertainment film was buoyed by IMAX ticket sales, which represented around 23% of domestic ticket sales, or $18.5 million.
Legendary Entertainment CEO says “Dune: Part Three” could happen “if Denis [Villeneuve] gets the script right and he feels that he can deliver another experience on par with what we’ve just completed.”

Sandworms emerge on the desert planet Arrakis in Denis Villeneuve’s “Dune: Part Two.”
Warner Bros. | Legendary Entertainment

After a two-month drought, “Dune: Part Two” has delivered a much-welcomed deluge of ticket sales to the domestic box office — and its success could bring a third franchise film to cinemas.
The Warner Bros. and Legendary Entertainment film opened with an estimated $81.5 million at the box office, the highest of any film released so far in 2024.

“Like an oasis in the desert, ‘Dune: Part Two’ is a sight for sore eyes across theatrical exhibition and all of Hollywood,” said Shawn Robbins, chief analyst at BoxOffice.com.
Denis Villeneuve’s sci-fi epic, the second in the Dune franchise, was buoyed by IMAX ticket sales, which represented around 23% of domestic ticket sales, or $18.5 million.
“The only reason it wasn’t higher is we ran out of seats,” said Rich Gelfond, CEO of IMAX.
Gelfond noted that presales of the film were “really impressive” and that in many locations, tickets for IMAX screenings aren’t available until three weeks out.
“The lesson is that if you take a beautiful visual experience, a good story and you put it in the hands of a brilliant filmmaker with an IMAX camera, you’re going to get very good results,” Gelfond said.

Notably, the entirety of “Dune: Part Two” was filmed using IMAX digital cameras.
Expectations from studio executives, theater owners and box office analysts are that the film will have a long tail in cinemas and continue to collect strong ticket sales in the weeks to come. Similar, Gelfond said, to Universal’s “Oppenheimer” and Disney’s “Avatar: The Way Of Water.”
Internationally, the film is expected to tally $97 million, bringing its global haul to $178.5 million. IMAX represented 18% of all international ticket sales, the company said. The film will debut in China on March 8.
“I think this is a movie where you know the word of mouth is going to carry it,” Josh Grode, CEO of Legendary Entertainment told CNBC. “It is a stupendous piece of filmmaking. There’s no other way to say it. I’ve just about run out of adjectives.”
Grode didn’t dismiss rumors of a potential third film in the franchise, noting that, “We have to have all creative stakeholders aligned and support the vision.”
“I think everybody is very excited and really enjoying this moment and if Denis [Villeneuve] gets the script right and he feels that he can deliver another experience on par with what we’ve just completed then I don’t see why not,” he said.

Timothee Chalamet stars as Paul Atreides in Denis Villeneuve’s “Dune: Part Two.”
Warner Bros. | Legendary Entertainment

The strong opening for “Dune: Part Two” comes after the film was removed from the 2023 movie calendar because dual Hollywood labor strikes made it impossible for cast members to promote the film publicly.
Grode noted that Legendary Entertainment struggled with the decision to move the film out of its November slot and to a new date in March. However, he felt that without a marketing campaign “that matched the movie” the film might not reach as many moviegoers.
“Hindsight is always 2020, but I think it may be absolutely the right decision,” he said.
The film’s cast has been heavily promoting the film for weeks, participating in junkets, video interviews and appearing on late-night shows. Even the stars’ premiere outfits have been making headlines, driving more awareness of the film’s release.

Timothée Chalamet and Zendaya attend the World Premiere of “Dune: Part Two” in Leicester Square in London, England, on Feb. 15, 2024.
Gareth Cattermole | Getty Images Entertainment | Getty Images

Alongside industry veterans such as Christopher Walken, Stellan Skarsgard, Javier Bardem, Josh Brolin and Dave Bautista, “Dune: Part Two” features four of the biggest young stars in Hollywood: Zendaya, Timothée Chalamet, Florence Pugh and Austin Butler.
Heading into the weekend, the domestic box office had tallied less than $900 million in ticket sales through the first two months of the year, a nearly 18% drop from the same period in 2023, according to Comscore data. A boost at the beginning of the year could prove critical to a box office that’s still struggling to reclaim $10 billion in domestic annual ticket sales, a mark last seen before the Covid-19 pandemic.
“In any given box office year there is a turning point and in 2024 the ‘Dune: Part Two’ debut represents a milestone in a year bereft of blockbuster-sized offerings,” said Paul Dergarabedian, senior media analyst at Comscore. “The box office year of ’24 officially kicked off this weekend two months late and not a moment too soon and will help build the much-needed momentum for March and beyond for movie theaters.”
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal distributed “Oppenheimer.” More

Legion M is taking crowdfunding to the next level — giving ordinary moviegoers a seat at Hollywood’s table.
In less than a decade, the studio has worked with a number of Hollywood stars and funded the recently released cryptocurrency documentary “This is Not Financial Advice,” as well as the upcoming William Shatner documentary “You Can Call Me Bill.”
If a film or television project performs well at the box office or is bought by a distributor, those who invested get a cut.

William Shatner attends the William Shatner handprint ceremony hosted by Legion M during 2022 Comic-Con International: San Diego at Theatre Box on July 21, 2022 in San Diego, California.
Emma Mcintyre | Getty Images

When Paul Scanlan and Jeff Annison first dreamed up their production studio, Legion M, they set out to build not just a company, but a community.
The movie studio behind buzzy names like “Jay and Silent Bob Reboot,” “Colossal” and the upcoming William Shatner documentary “You Can Call Me Bill” is part of a shift in Hollywood over the last decade to a new crowdfunding model, allowing producers to solicit donations for film and television projects and reward investors with more than just a limited edition piece of merchandise.

Now, fans can get an actual return on their investment.
“I think a lot of people look at equity crowdfunding as a different way to raise money,” said Annison, cofounder and president of Legion M. “It’s a different way to fund your company, or a different way to fund your film. And we look at it as a fundamentally different way to build a fundamentally different type of business.”
Legion M launched in 2016 in the wake of the Jumpstart Our Business Startups, or JOBS, Act, which lowered barriers to entry for raising capital and allowed companies to access funding in ways that were previously barred due to securities regulations.
While crowdfunding is not a new concept, Legion M is taking it to the next level — giving ordinary moviegoers a seat at Hollywood’s table.
In less than a decade, the studio has worked with a number of Hollywood stars, including Anne Hathaway, Jason Sudeikis on 2016’s “Colossal” and Simon Pegg and Minnie Driver in 2023’s “Nandor Fodor and the Talking Mongoose.”

The company has also funded the recently released cryptocurrency documentary “This is Not Financial Advice.”

Risks and rewards

Crowdfunding sites like Kickstarter, GoFundMe and Indiegogo have long allowed creators to tap into their most ardent fan bases to create content.
In the past, Kickstarter backers generated $3.1 million for Zach Braff’s 2014 film “Wish I Was Here,” $5.7 million for Rob Thomas’ 2014 “Veronica Mars” movie and a record-breaking $11.3 million for Critical Role’s “Legend of Vox Machina” animated series, which was later picked up by Amazon Prime Video.
However, Kickstarter does not allow campaign creators to offer those who donate any financial returns.
That’s what sets Legion M apart. If a film or television project performs well at the box office or is bought by a distributor, those who invested get a cut.
“For the William Shatner documentary, we basically replaced the role of a single financier writing that check with 1,200 small financiers that wrote smaller checks,” Annison said.
The minimum investment for the documentary was $100.
Investors can also buy a stake in Legion M itself for as little as $40. The company says it has more than 45,000 investors.
For Legion M’s “My Dead Friend Zoe,” the company collected funds from Legion M investors and from larger, more traditional Hollywood financiers, including Kansas City Chiefs star tight end Travis Kelce.

Left to right, Chris Temple, Glauber Contessoto, Zach Ingrasci and Rayz Rayl of “This Is Not Financial Advice” pose for a portrait during the 2023 Tribeca Festival at Spring Studio on June 10, 2023 in New York City.
Erik Tanner | Getty Images

Legion M offers creators access to its fanbase, something that independent filmmaker Chris Temple, co-director of “This is Not Financial Advice” found complimented his documentary. His film centers on several retail investors navigating the peaks and valleys of the crypto world.
He said working with Legion M “felt very natural from the first call.”
“This is a grassroots film about investors who have finally gotten access into markets that they don’t have access into and people taking control of their own finances,” he said, noting the parallels with Legion M’s work.

Fans know best

Legion M is not alone in this space. Angel Studios made headlines after its crowdfunded “Sound of Freedom” secured around $250 million at the global box office on a budget of just $14.5 million.
While Angel Studios markets itself as a production studio that brings “light” to entertainment, much of its focus is on elevating religious titles to the mainstream. Legion M’s focus is the Comic Con crowd, though it’s diversifying its portfolio to include comedies, thrillers, murder mysteries, dramas, sci-fi action flicks and documentaries.

Jeff Annison and Paul Scanlan attend the world premiere of “You Can Call Me Bill” at the 2023 SXSW Conference and Festivals at The Paramount Theater on March 16, 2023 in Austin, Texas.
Frazer Harrison | Getty Images

“What’s nice about what Legion M is doing is we’re creating a built-in audience,” said Scanlan, the company’s cofounder and CEO.
The company’s logo, an “M” with a bar over top representing the roman numeral for one million, is a nod to Legion M’s goal of drawing in one million fans as shareholders.
“Imagine an entertainment company or a studio that has a million fans that are literally financially invested in the films that they have coming out, but they’re also emotionally invested in the films,” Annison said. “Because they’ve been following around since day one and they got a chance to go behind the scenes and they’ve heard the director articulate his story and their vision for what the movie will be.”
One of those fans is Matt Conkling, who made his first investment in the company in 2019, drawn to how Legion M offered investors a chance not just to give money, but to be involved in productions, too.
Soon after his first investment, Conkling saw a post from the company requesting a number of props including neon signs and automobiles for its mystery-thriller film “Archenemy,” which starred Joe Manganiello of “True Blood.”
“I raised my hand,” Conkling said, who volunteered his 1975 Chevy El Camino. Two days later, Conkling got a call to help handle the car around set.
“So it went from, ‘Here’s my keys,’ to a huge crash course on the film industry,” he said. “After that, I got hooked.”
Conkling had previously tried to get in on the ground floor of a film project from a different production company he preferred not to name, but he wasn’t able to meet the minimum investment amount of $25,000.
“How often do regular everyday people get the chance to potentially invest in something at a low dollar amount?” he said.
For Conkling, Legion M has become more than a casual investment, it’s become a career, of sorts. While he continues to finance individual film projects the company is promoting — and said he ultimately wants to invest enough to own 1% of the company — by volunteering his car to one production, he’s managed to find his niche in Hollywood.
After “Archenemy,” Conkling was tapped to source the titular white van for Legion M’s “The Man in the White Van,” a crime thriller based on actual events that occurred the 1970s. That gig fostered another on Dennis Quaid’s “The Long Game,” which filmed in Texas. And it hasn’t stopped there: Conkling can even be spotted playing dead in the background of the Netflix film “The Grey Man.”
“Legion M is the gift that keeps giving,” Conkling said. More

Biotech company Viking Therapeutics has emerged as a strong potential player — and deal target — in the budding weight loss drug market. 
Viking is just one of several companies racing to join the space, which is currently dominated by Eli Lilly and Novo Nordisk.
Some Wall Street analysts said Viking’s experimental obesity treatment may be “best-in-class” following the release of midstage trial data.

Cr | Istock | Getty Images

Biotech company Viking Therapeutics has emerged as a strong potential entrant — or takeover target — in the budding weight loss drug market. 
Viking is just one of several companies racing to join the growing space. Some analysts say the market could be worth $100 billion by the end of the decade. Viking aims to compete with injectable drugs from Eli Lilly and Novo Nordisk, which sparked the weight loss drug industry gold rush over the past year despite their hefty price tags and barriers to insurance coverage. 

Viking’s drug could become a strong rival. Some Wall Street analysts said its experimental obesity treatment may be “best-in-class.” In a midstage trial, an injectable version of Viking’s drug appeared to promote even greater weight loss than Eli Lilly’s Zepbound.
Viking gave a first glimpse at data from that study on Tuesday, and its shares soared 120%. The promising results make the company an impressive potential player in a market that will likely have room for more entrants in the coming years. 
Goldman Sachs projects that between 10 million and 70 million Americans will be taking weight loss drugs by 2028. Eli Lilly and Novo Nordisk have also struggled to offer enough supply of their treatments, giving other companies a chance to win market share.  
The new data also makes Viking a more attractive deal target for larger companies trying to break into the space or expand their obesity treatment offerings.
It’s too early to say whether Viking’s drug could have an edge over existing or developing weight loss treatments. It’s difficult to compare therapies without pitting them head to head in the same clinical trial. 

Viking also needs to conduct a late-stage study on its drug, and likely won’t launch the injection until the later part of the decade. The small company faces hurdles to entering the market, such as manufacturing enough of the drug to meet booming demand. But an acquisition by a larger company could help solve some of those issues.

Data suggests Viking’s drug may have an edge

Viking’s phase two trial followed more than 170 patients who are overweight or obese. They received different dose sizes of the injectable drug or a placebo.
The trial did not directly compare Viking’s treatment to other drugs. Still, many analysts compared Viking’s injection to Eli Lilly’s Zepbound, largely because they work the same way. 

An injection pen of Zepbound, Eli Lilly’s weight loss drug, is displayed in New York City on Dec. 11, 2023.
Brendan Mcdermid | Reuters

Both drugs target two naturally produced gut hormones called GLP-1 and GIP. The combination is said to slow the emptying of the stomach, make people feel full for longer and suppress appetite by slowing hunger signals in the brain. Meanwhile, Novo Nordisk’s weight loss injection Wegovy only targets GLP-1. 
Analysts were particularly impressed by the weight patients lost after they took the highest dose of Viking’s drug. Those who received a weekly 15 milligram dose of the treatment lost 13.1% of their body weight on average after 13 weeks compared to those who took the placebo. 
Viking’s drug data shows a “best-in-class profile” among both approved and experimental weight loss drugs with phase two trials, William Blair analyst Andy Hsieh wrote in a note Tuesday. Eli Lilly’s Zepbound generated roughly 7% weight loss relative to a placebo after 12 weeks in a phase three clinical trial, Hsieh noted.
Viking’s drug also appears to top Novo Nordisk’s weight loss injection Wegovy, according to a separate Tuesday note from BTIG analysts.
Based on chart data from a phase three trial, the analysts estimated that Wegovy caused around 5% weight loss at 13 weeks compared to a placebo.
Meanwhile, several analysts estimated that some doses of Eli Lilly’s experimental injection, retatrutide, caused between 9% and 13% weight loss relative to a placebo at 13 weeks based on chart data from a midstage trial.
The majority of adverse side effects that patients experienced after starting Viking’s drug were mild or moderate. Many of those instances were gastrointestinal, which is common across all weight loss and diabetes treatments.
Around 20% of patients who took the 15 milligram version of Viking’s drug discontinued treatment early in the study. That compares with around 14% of those taking the placebo who stopped early in the trial. 
But Jefferies analyst Akash Tewari wrote in a note Tuesday that Viking’s trial used faster “titration” in patients, which refers to increasing the dose size a patient takes over time until they reach a target dosage level. 
He said Viking may be able to make its drug easier for patients to tolerate in a future trial with slower titration, which could potentially lower the treatment’s efficacy. 

Viking still has a long way to go

Despite the compelling data, Viking has far more work to do before it can compete in the weight loss drug market. 
The company plans to meet with the U.S. Food and Drug Administration later this year to discuss a clinical development plan for the treatment. 
Viking CEO Brian Lian told investors on a call Tuesday that the company will likely conduct another phase two trial that could last six to nine months.
Jefferies’ Tewari estimates that Viking’s treatment won’t reach the market until 2029 or later. A late-stage trial on the drug could be lengthy. Eli Lilly’s phase three study on Zepbound lasted two and a half to three years.
The late entrance of Viking’s drug is one reason why Tewari doesn’t believe the company will meaningfully cut into Eli Lilly’s market.
The pharmaceutical giant could also launch a slate of other weight loss treatments over the next few years that may have advantages over Zepbound, whether they offer more weight loss or convenience. They include Eli Lilly’s experimental pill orforglipron and the widely watched retatrutide, which mimics three gut hormones instead of two. 

An Eli Lilly and Company pharmaceutical manufacturing plant is pictured in Branchburg, New Jersey, on March 5, 2021.
Mike Segar | Reuters

Analysts from Deutsche Bank added in a note Tuesday that manufacturing the treatments “at scale to meet outsized demand has proven to be no easy feat,” which gives Eli Lilly and Novo Nordisk a “defensive moat” against rivals.
Viking acknowledged this hurdle on the call Tuesday. Lian said the company has enough supply of the drug to support its clinical trials, but its manufacturing capacity is insufficient for a commercial rollout. 
But Lian noted that the company is “spending a lot of time” evaluating multiple manufacturing processes to understand “what’s fastest, what’s highest yielding, what’s cheapest and what’s most scalable.” 

Partnerships, buyouts are on the table 

Viking’s impressive data could make it an attractive target for a takeover or partnership with a large pharmaceutical company. That could give Viking the commercial and manufacturing capabilities needed to compete in the weight loss drug market. 
William Blair’s Hsieh added that large pharmaceutical companies could maximize the value of Viking’s treatment because they could better navigate the rebate and reimbursement landscape for weight loss drugs.
Some analysts expect other companies to have high interest in Viking.
“This very well could be on the shopping list for any large-cap pharma or biotech company that wants to be in the obesity market but currently doesn’t have a drug. There are plenty of them out there,” Oppenheimer analyst Jay Olson told CNBC. 
He added that a company could “pay a pretty significant premium for Viking and pick this up … for a relatively low price compared to the potential that exists for a drug like this.” As of Friday, Viking had a market cap of more than $8.5 billion.

Injection pens of Novo Nordisk’s weight loss drug Wegovy are shown in this photo in Oslo, Norway, on Nov. 21, 2023.
Victoria Klesty | Reuters

Viking is an appealing deal target because of more than just the new data. Wall Street is eager for the company to release early-stage trial results on an oral version of its weight loss treatment this quarter. 
The BTIG analysts noted that the intellectual property coverage for both versions of the drug extends beyond 2040, “boding well” for potential partnership discussions. 
Viking also has other drugs in development, including an oral treatment for a certain form of liver disease. Eli Lilly, Novo Nordisk and other drugmakers are also racing to see whether their drugs can treat that same condition. 
Viking hasn’t disclosed any details about its discussions with potential partners. But the company has “always been open to partner discussions since day one, so we’re always opportunistically evaluating whatever is presented to us,” Lian said during Viking’s fourth-quarter earnings call last month. 
Other drugmakers have pursued deals over the past year to carve out a space in the weight loss drug market. 
Swiss company Roche said it would buy the privately held U.S. obesity drugmaker Carmot Therapeutics for $2.7 billion. AstraZeneca signed a licensing agreement with Chinese biotech company Eccogene to develop an obesity pill. 
Even Novo Nordisk and Eli Lilly have snapped up smaller obesity drug companies this year to maintain their dominance in the market.Don’t miss these stories from CNBC PRO: More