In the rapidly growing market of weight-loss management in the pharmaceutical industry, Viking Therapeutics (VKTX) has generated a buzz thanks to the company’s lead anti-obesity candidate, VK2735, which has demonstrated promising results in phase 2 trials. While VK2735 is still some years away from gaining regulatory approval, Viking is already developing an oral version of the drug. Moreover, the company’s diversified portfolio includes another weight-loss candidate currently under preclinical studies, treatments for metabolic dysfunction-associated steatohepatitis – a liver disease linked with obesity, and VK0214, a therapy under investigation for a rare nerve system disease.
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Most recently, the company published positive results from the company’s Phase 2b clinical trial of VK2809, which has catalyzed the share price up over 7% in the past few days. Despite the risks involved in late-stage clinical treatments potentially failing, the company’s active approach, robust pipeline, and strong financial standing make it an attractive investment in biopharma.
Viking Therapeutics Delivers Positive News
Viking Therapeutics is a clinical-stage biopharmaceutical company developing unique therapies for metabolic and endocrine disorders. The company’s lead drug candidate, VK2809, is an oral agonist of the thyroid hormone receptor beta. It aims to treat patients with non-alcoholic steatohepatitis and NAFLD.
The company has released the final results from its Phase 2b clinical trial of VK2809. The drug was tested on patients with non-alcoholic steatohepatitis and met both primary and secondary endpoints of the trial, showing promising safety and excellent tolerability.
Viking Therapeutics’ Recent Financial Results
Research and development and general and administrative expenses grew in the third quarter of 2024, compared to the same period in 2023, from $18.4 million to $22.8 million and $8.9 million to $13.8 million, respectively. The cost rise is primarily attributed to heightened expenditure in drug manufacturing, stock-based compensation, salaries, benefits, and regulatory services. Viking reported a net loss of $24.9 million or $0.22 per share, which is only marginally higher than the net loss of $22.5 million or $0.23 per share in 2023 due to increased interest income.
The company ended the quarter with a cash balance and short-term investments totaling $930 million, a significant increase from the $362 million held at the end of 2023.
What Is the Price Target for VKTX?
The stock has been on an impressive run, climbing over 338% over the past year. It trades near the middle of its 52-week price range of $11.21 – $99.41 and shows negative price momentum as it trades below most major moving averages.
B. Riley analyst Mayank Mamtani recently initiated coverage of Viking Therapeutics (VKTX) with a Buy rating and $109 price target, noting the long-term potential of VK2735, the only GLP1/GIP agonist being developed for an induction and maintenance paradigm.
Overall, Viking Therapeutics is rated a Strong Buy, with an average price target for VKTX of $115.80, representing a potential 120.19% upside from current levels.
VKTX in Summary
Viking Therapeutics is setting a promising tone with the recent positive results from its Phase 2b clinical trial of VK2809. The company’s notable pipeline, innovative stance, and solid financial performance have helped the stock triple in value over the past year, and analysts are predicting further significant potential upside, making VKTX a compelling option.
