Viking Therapeutics stock gains traction with standout dual-agonist VK2735 efficacy data

Published 21/01/2025, 13:14
Viking Therapeutics stock gains traction with standout dual-agonist VK2735 efficacy data

Tuesday, Viking Therapeutics (NASDAQ:VKTX), currently trading at $32.65, remained in focus as H.C. Wainwright analyst Joseph Pantginis reiterated a Buy rating with a price target of $102.00. According to InvestingPro data, analysts maintain a strong bullish consensus on the stock, with price targets ranging from $74 to $164. This endorsement comes in the wake of Novo Nordisk (NYSE:NVO)'s recent Phase 3b STEP UP trial results, released on January 17, 2025.

Novo Nordisk reported that adults with obesity achieved significant weight loss using their semaglutide treatment, but their shares dipped following the announcement. In contrast, Viking Therapeutics' shares experienced modest gains.

Viking's VK2735, a dual GLP-1/GIP receptor agonist, is seen as potentially superior to Novo Nordisk's semaglutide, which only targets GLP-1. Viking's Phase 2 VENTURE study demonstrated promising weight loss results with VK2735 compared to a placebo.

InvestingPro analysis shows the company maintains a strong financial position with a current ratio of 36.47 and more cash than debt on its balance sheet, providing ample runway for drug development. With weekly doses of 2.5 mg, 5 mg, and 10 mg, patients saw weight loss of 9.1%, 10.9%, and 12.9% respectively, while a daily 100 mg oral dose of VK2735 led to an 8.2% weight loss after just 28 days.

The analyst believes that extrapolating these results suggests VK2735 could achieve comparable weight loss to semaglutide before the 72-week mark noted in Novo Nordisk's trial. Pantginis highlighted the potential of both the oral and subcutaneous forms of VK2735, especially when compared to other weight loss drugs, including Novo's CagriSema.

The maintained Buy rating and price target reflect a positive outlook for Viking Therapeutics, as the analyst views VK2735 as a strong contender in the obesity treatment market. This sentiment is based on the versatility and efficacy of VK2735's delivery methods, which could potentially position it favorably among competitors in the field.

While the stock has declined 35.85% over the past six months, InvestingPro reveals 10+ additional investment insights and a comprehensive analysis available in the Pro Research Report, helping investors make informed decisions about this emerging biotech player.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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