BTIG reiterates buy rating on Viking Therapeutics stock amid obesity trials

Published 25/06/2025, 20:02
BTIG reiterates buy rating on Viking Therapeutics stock amid obesity trials

Investing.com - BTIG reiterated its Buy rating and $125.00 price target on Viking Therapeutics (NASDAQ:VKTX), currently trading at $26.82, following the company’s announcement of two Phase 3 obesity trials. According to InvestingPro data, analyst targets range from $30 to $125, reflecting significant upside potential.

Viking Therapeutics announced Wednesday the initiation of its VANQUISH Phase 3 studies testing VK2735 for obesity treatment. The trials will evaluate the weekly subcutaneous injection over a 78-week treatment period. The $3 billion market cap company maintains strong financial health, with InvestingPro analysis showing more cash than debt and an impressive current ratio of 44.25.

The VANQUISH-1 study will enroll approximately 4,500 adults who are obese or overweight with a comorbid condition, while VANQUISH-2 will enroll about 1,100 Type 2 diabetes patients who are obese or overweight. Both studies will randomize patients to receive either 7.5mg, 12.5mg, 17.5mg doses, or placebo.

The primary endpoint for both trials is percentage of weight loss from baseline. The studies will include an open-label extension allowing patients to continue receiving treatment after completing the initial trial period.

BTIG expressed encouragement about Viking’s execution across its obesity franchise, noting the firm sees "tremendous value" in the company’s portfolio of obesity and metabolic disease programs. The research firm also highlighted upcoming oral VK2735 data from the VENTURE study expected in the second half of 2025. For deeper insights into Viking Therapeutics’ valuation and growth prospects, access the comprehensive research report available on InvestingPro, which includes detailed analysis of the company’s financial health and market position.

In other recent news, Viking Therapeutics reported a net loss of $0.41 per share for the first quarter of 2025, which was wider than analysts’ expectations of a $0.33 loss per share. Despite this, the company maintains a strong cash position with $852 million on hand. Viking Therapeutics is advancing its VK2735 program, with Phase 3 trials for the subcutaneous formulation set to begin in the second quarter of 2025. The company has also secured a manufacturing and supply agreement with CordenPharma to support the production of VK2735 in both oral and subcutaneous forms. Analysts at Leerink Partners and H.C. Wainwright have reiterated their positive outlook on Viking Therapeutics, maintaining an Outperform rating and a Buy rating, respectively. Cantor Fitzgerald initiated coverage with an Overweight rating, highlighting the potential of VK2735 in the obesity treatment market. Viking’s strategic focus on both subcutaneous and oral formulations of VK2735 aims to address the growing demand for effective obesity treatments.

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