J.P. Morgan analyst Hardik Parikh has maintained their bullish stance on VKTX stock, giving a Buy rating yesterday.
Hardik Parikh has given his Buy rating due to a combination of factors surrounding Viking Therapeutics’ recent strategic developments. The company has secured a multi-year manufacturing agreement with CordenPharma, which is set to produce and supply both the active pharmaceutical ingredient (API) and auto-injectors for Viking’s VK-2735 program. This agreement is crucial as it addresses previous investor concerns about the manufacturing supply chain for the program, providing clarity and confidence in the initial stages of its commercial launch.
Furthermore, the agreement is expected to facilitate the commencement of the phase 3 subcutaneous trial, with a potential market launch anticipated around 2028. The contract includes a significant prepayment of $150 million by Viking over the next three years, which underscores the company’s commitment to scaling up production. Although additional details on the contract are awaited, this development is seen as a positive step for Viking, especially given the recent pressure on its stock. These factors collectively contribute to Parikh’s optimistic outlook for Viking Therapeutics.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $105.00 price target.
VKTX’s price has also changed dramatically for the past six months – from $60.830 to $26.520, which is a -56.40% drop .
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