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Viking Therapeutics Stock Jumps 18% as Excitement Grows for VK2735 Weight-Loss Drug Data

Hannah Perry | October 25, 2024

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Viking Therapeutics’ Stock Surges 18% as Anticipation Builds for Weight-Loss Drug Data

Viking Therapeutics Inc. (VKTX) saw its stock soar by 18% on Thursday, driven by excitement surrounding its oral weight-loss drug, VK2735. This biotech company is in the spotlight as analysts express high hopes for its product, which not only aims to assist patients in losing weight but also shows potential to emerge as a leader in the weight-loss pharmaceutical market.

Earnings Report and Financial Stability

After the company’s recent earnings report, investors were encouraged by the substantial $930 million in cash available on Viking’s balance sheet at the end of Q3. Despite posting a loss of $24.9 million (or 22 cents a share) for the quarter, this was a narrower loss than the prior year’s $22.5 million (or 23 cents a share). The reported loss was also slightly better than the FactSet consensus forecast of a 24 cents loss per share, sparking further investor confidence.

Analyst Ratings and Future Data Releases

Out of the 13 analysts covering Viking on FactSet, every one of them has assigned a buy rating, underlining the optimism towards Viking’s future prospects. Analysts have eagerly anticipated an upcoming data release from the Phase 1 oral study, scheduled for early November during ObesityWeek, which starts on November 4. Maxim Group analysts noted, “We believe Viking has a potential best-in-class asset and is adequately financed to complete the next phase of development,” indicating a strong belief in the company’s potential.

VK2735: A Game-Changer in Weight Loss

Viking Therapeutics is not only focused on its oral version of VK2735; it’s also developing an injectable form. Data from a Phase 2 trial for the injectable version, which is expected to be released on November 3, has already reported positive outcomes. Patients have demonstrated an impressive loss of 15.7% of mean body weight from the baseline, making it a promising option for those fighting obesity. The injectable has shown safety and tolerability, with most adverse events being mild or moderate in nature.

The Appeal of an Oral Weight-Loss Drug

One major advantage of the oral VK2735 over its injectable counterpart is the potential appeal to patients averse to needles. As the company notes, having an oral formulation could significantly enhance patient adherence to weight-loss therapy. They stated, “A key advantage in this regard is the potential to transition patients from the subcutaneous formulation to an oral formulation which utilizes the same molecule.” Analysts from Oppenheimer have expressed optimism about the opportunity for less frequent oral dosing and potential OTC availability.

Market Potential and Industry Context

The demand for effective weight-loss solutions in the U.S. is immense, with over 40% of Americans classified as obese, according to the National Institute of Diabetes and Digestive and Kidney Diseases. Viking’s progress in weight-loss drug development places it in direct competition with established leaders such as Novo Nordisk and Eli Lilly, which dominate the market. However, analysts believe Viking Therapeutics could offer a more affordable entry point for investors looking to tap into the burgeoning weight-loss drug sector, highlighted by a staggering 283% growth in stock value year-to-date, surpassing the broader market’s 22% gain in the S&P 500.

Investor Perspectives and Future Outlook

The excitement surrounding Viking Therapeutics and its drug VK2735 reflects broader trends within the complicated landscape of weight-loss therapies. If successful, the oral version could establish itself as a substantial player in the obesity treatment market, all while appealing to a population increasingly interested in weight management solutions that avoid the discomfort associated with injections.

Viking Therapeutics stands at a crucial juncture, with the upcoming data releases set to either bolster or challenge its promising trajectory in the pharmaceutical industry. As anticipation builds, both investors and potential partners are closely observing developments within the company.

For more information on Viking Therapeutics and the fascinating world of weight-loss drug development, readers can stay updated through financial news sources.