Viking Therapeutics stock maintains buy rating as phase 3 trials begin

Investing.com - H.C. Wainwright has reiterated its buy rating and $102.00 price target on Viking Therapeutics (NASDAQ:VKTX), currently trading at $27.09 with a market cap of $3 billion, following the company’s announcement of two Phase 3 trials for its weight loss drug candidate. According to InvestingPro data, analyst targets range from $30 to $125, with the company maintaining a GOOD overall financial health score.

The pharmaceutical company initiated VANQUISH-1 and VANQUISH-2, randomized, double-blind, placebo-controlled, multicenter trials for subcutaneous VK2735 on Tuesday. VANQUISH-1 aims to enroll approximately 4,500 adults who are obese or overweight with at least one weight-related comorbidity.

VANQUISH-2 will focus on approximately 1,100 adults with type 2 diabetes who are also obese or overweight. Both studies will randomize participants into four weekly treatment arms: VK2735 at 7.5 mg, 12.5 mg, or 17.5 mg, or placebo.

The primary endpoint for both trials is the percent change in body weight from baseline at 78 weeks for those receiving once-weekly subcutaneous VK2735 versus placebo. Secondary endpoints include the proportion of participants achieving weight reductions of 5% or more, along with safety assessments.

Viking Therapeutics also plans to initiate another study later this year evaluating monthly maintenance dosing of VK2735, while continuing to advance its oral formulation with results from the Phase 2 VENTURE-Oral Dosing study expected in the second half of 2025. With the next earnings report due on July 23, investors can access comprehensive analysis and additional insights through the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US stocks.

In other recent news, Viking Therapeutics announced the initiation of its Phase 3 VANQUISH studies for the obesity treatment drug VK2735, targeting both general obesity and Type 2 diabetes patients. These trials will assess the efficacy of different doses over a 78-week period, with the primary goal being weight loss from baseline. Leerink Partners reiterated an Outperform rating on Viking Therapeutics, highlighting the company’s progress in its obesity treatment programs and a strategic manufacturing partnership with CordenPharma to ensure adequate supply for its clinical programs. H.C. Wainwright maintained its Buy rating, citing strong efficacy data for VK2735 and a robust cash position of $852 million despite reporting a wider-than-expected loss per share. BTIG also reiterated a Buy rating, expressing optimism about Viking’s obesity franchise and upcoming data from the VENTURE study. Cantor Fitzgerald initiated coverage with an Overweight rating, emphasizing the potential of VK2735 as it progresses towards Phase 3 trials. Viking Therapeutics is expected to continue its momentum into 2025 with key milestones ahead, including Phase 2 and Phase 3 trial results for both the subcutaneous and oral formulations of VK2735.

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