Viking Therapeutics stock hits 52-week low at $20.26

Viking Therapeutics Inc (NASDAQ:VKTX). shares have reached a 52-week low, trading at $20.26, as investors show concern over the company's future prospects. According to InvestingPro data, the company maintains strong fundamentals with a current ratio of 33.09 and more cash than debt on its balance sheet. This price level reflects a significant downturn for the biopharmaceutical company, which specializes in therapies for metabolic and endocrine disorders. Over the past year, Viking Therapeutics has seen its stock value plummet, with a 1-year change showing a stark decrease of -72.14%. Despite the decline, analyst price targets range from $30 to $164, suggesting potential upside. This decline has raised questions among shareholders about the company's strategy and the commercial viability of its product pipeline. Discover more insights and 12 additional ProTips with InvestingPro's comprehensive research report.

In other recent news, Viking Therapeutics has announced a strategic manufacturing agreement with CordenPharma to secure a steady supply of its obesity treatment, VK2735. This agreement includes the production of the active pharmaceutical ingredient and final product forms, positioning Viking to meet significant commercial demand. The firm will prepay $150 million between 2025 and 2028, with dedicated manufacturing lines for both subcutaneous and oral formulations of VK2735. Meanwhile, H.C. Wainwright has reaffirmed its Buy rating on Viking Therapeutics, maintaining a price target of $102.00. The firm cited the completion of enrollment for the Phase 2 VENTURE-Oral trial, which aims to assess the safety and efficacy of VK2735.

Goldman Sachs has initiated coverage on Viking Therapeutics with a Neutral rating and a $30.00 price target, reflecting a cautious outlook due to the competitive obesity treatment market. The firm highlighted the challenges Viking faces, such as high entry barriers and the need to differentiate VK2735 from competitors. Despite this, H.C. Wainwright remains optimistic, pointing to the drug's strong performance in previous clinical readouts. Viking is preparing for Phase 3 trials for the subcutaneous form of VK2735 in 2025, as it continues to navigate a hyper-competitive landscape.

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