Viking Therapeutics Inc said on Tuesday its experimental obesity drug was safe and helped reduce weight by up to 6% in an early-stage study, sending its shares nearly 50% higher in pre-market trading.

The drugmaker, which will begin a mid-stage trial for the drug in mid-2023, is entering the race to develop an obesity treatment, which has contenders including Altimmune Inc, Novo Nordisk and Eli Lilly and Co.

Drug developers are targeting the obesity treatment market, which is expected to hit $50 billion in sales by 2030. While Novo Nordisk's drug Wegovy is already available, Eli Lilly expects approval for its obesity drug candidate, tirzepatide this year.

Viking's experimental drug, VK2735, showed up to 6% reduction in mean weight compared to placebo and was safe and well-tolerated in the study conducted in about 88 patients, adding that majority of the adverse events in the 28-day study were mild or moderate.

Viking's early-stage data "could very well position" the drug as a competitor to Eli Lilly's tirzepatide, Truist Securities analyst Joon Lee said in a note.

Higher doses of the drug were only given for a limited time in the early-stage study and it plans to explore higher doses over a longer treatment window in the mid-stage trial, Viking said.

The drug is also being tested in an early-stage extension study to evaluate oral doses for 28 days with results expected by the second half of the year, the company said.

Shares rose nearly 50% to $13.66 before the bell.