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Investing.com - Stifel has reiterated its Buy rating and $95.00 price target on Viking Therapeutics (NASDAQ:VKTX), a biotech company currently valued at $2.7 billion, following the company’s Phase 2 VENTURE-Oral trial results for VK2735. According to InvestingPro data, the stock has shown remarkable strength with a 30% gain over the past six months, while maintaining a solid financial health score.
The 13-week study demonstrated dose-dependent weight loss of up to 12.2% absolute and 10.9% placebo-adjusted, with progressive weight loss observed at all doses and no plateau effect. Statistical significance over the 15mg dose was achieved early, by Week 1 of the trial.
Gastrointestinal side effects were higher than in Phase 1 trials, occurring early and being largely mild to moderate in severity. Stifel noted that the rapid two-week titration starting at 60mg will be slowed in subsequent trials.
The research firm expressed particular interest in the high-to-low dose maintenance cohort (90→30mg), which showed rapid induction weight loss that continued to progress at the lower dose, suggesting a viable commercial approach and ideal maintenance positioning.
Viking Therapeutics is currently conducting the Phase 3 VANQUISH trial for the injectable form of the drug and plans to commence maintenance studies for the injectable version in the coming months, exploring weekly-to-monthly and weekly-to-oral administration options.
In other recent news, Viking Therapeutics announced the results of its Phase II VENTURE-Oral trial for VK2735 in obesity patients, which showed promising weight loss outcomes. The 13-week study involved 280 participants and reported a placebo-adjusted weight loss of 10%-11% at the highest doses. Despite these results, the stock experienced a notable decline, attributed to concerns over tolerability and discontinuation rates at higher doses. BTIG has maintained its Buy rating for Viking Therapeutics, setting a price target of $125.00, despite the stock’s drop. Mizuho (NYSE:MFG), however, suggests that Eli Lilly (NYSE:LLY) offers superior obesity treatment results compared to Viking, citing higher patient discontinuation rates in Viking’s trial. Viking Therapeutics’ trial results achieved both primary and secondary endpoints, with patients showing significant weight loss compared to those on placebo. This development has led to mixed reactions in the market, with some analysts expressing concerns over competitive positioning.
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