Viking Therapeutics (NASDAQ:VKTX) shares surged more than 80% premarket Monday after the company announced positive top-line results from its Phase 2 clinical trial of VK2735.
VK2735 is a medicine that may help treat obesity and other metabolic disorders. It works by targeting to two different receptors in the body called GLP-1 and GIP.
VKTX said the Phase 2 VENTURE trial achieved its primary endpoint and all secondary endpoints, with patients receiving VK2735 demonstrating "statistically significant reductions in body weight compared with placebo."
Furthermore, the company said the VK2735 treatment was safe and well tolerated. Viking intends to meet with the FDA and discuss next steps in the development of VK2735.
Reacting to the report, analysts at Truist reiterated their Buy rating on Viking. They said the data is "very impressive with placebo-adjusted weight loss of 13.1% in just 13 weeks of dosing."
"Furthermore, tolerability is inline with discontinuation from treatment comparable to placebo group," they added. "We view the data as a best-case scenario and expect shares to be very strong today in trading."
Given the significant premarket jump, VKTX shares are currently up 79%, trading above the $69 mark after closing Monday's session at $38.48.