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Viking Therapeutics initiated with a Neutral at Citi
The Fly

Viking Therapeutics initiated with a Neutral at Citi

Citi analyst David Lebowitz initiated coverage of Viking Therapeutics (VKTX) with a Neutral rating and $38 price target Viking’s VK2735 is an “intriguing potential blockbuster,” with its GLP-1/GIP dual agonist mechanism that could allow for superior efficacy relative to obesity treatment available options, the analyst tells investors in a research note. However, Citi says investors need to learn more regarding VK2735’s profile – in particular, safety data from larger and longer trials given that high discontinuations are already a challenge in the market. Furthermore, considering the substantial investment made by big pharma, the obesity market is highly capital intensive, a great challenge for emerging players, contends the firm. Such challenges, along with Viking’s “long timelines with modest news flow,” keep Citi on the sidelines for now.

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