Viking Therapeutics (VKTX) stock jumped 6% out of the gate Monday, but was last seen notably lower. The volatility comes after the biopharmaceutical company reported positive new clinical data for its weight-loss pill, VK2735.
The data released by Viking showed that adults taking the highest dosage of the oral VK2735 tablet lost an average of 8.2% of their body weight in just four weeks, or 6.8% more than those that received a placebo.
"We believe the VENTURE data demonstrate VK2735's promising efficacy and tolerability profile through 13 weeks of weekly dosing and support our belief that less frequent dosing regimens may provide effective maintenance of weight control," said Viking CEO Brian Lian, Ph.D., in a statement.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"The updated oral Phase 1 study results continue to demonstrate an encouraging tolerability profile and promising signs of clinical activity at doses of up to 100 milligrams daily," the executive added. "We believe the durable effects observed following 28 days of dosing suggest potential opportunities to introduce lower dose regimens following an initial induction of weight loss."
Lian noted that Viking plans to move forward on the clinical path with the Food and Drug Administration (FDA) later this year for an injectable version of VK2735 and that they expect to initiate a Phase 2 study of the oral tablet formation by the end of the fourth quarter.
Is Viking Therapeutics stock a buy, sell or hold?
It's been a volatile year for Viking Therapeutics stock, though good news on the weight-loss-drug front has the healthcare stock up 260% since the start of January. And Wall Street sees even more upside for VKTX.
According to S&P Global Market Intelligence, the consensus analyst target price for the mid-cap stock is $112.85, representing implied upside of nearly 55% to current levels. Additionally, the consensus recommendation is Strong Buy.
Financial services firm William Blair has an Outperform rating (equivalent to a Buy) on VKTX and gives it a current fair value of $96 per share.
"From a competitive advantage perspective, VK2735's status as a Phase III-ready asset, coupled with the ability to formulate into an oral route of administration (tablet formulation), along with an amylin program that is on track to enter Phase I development next year, offers a unique set of attractive characteristics in the lens of big pharma," says William Blair analyst Andy Hsieh.
The analyst acknowledges that it is "risky to base our investment thesis on an eventual takeout, the prospect is reasonably high given Viking's clinical differentiation, combined with the large total addressable market of chronic metabolic conditions."
Related content
-
New Hampshire Mobile Home and Condo Property Taxes Inexplicably TripleProperty Tax A city-wide revaluation is causing concern among Rochester locals who argue property taxes are too high.
-
Best Cold Weather Places to RetirePlaces to live Some like it hot; others not so much. Here are the 12 best places to retire if you can't stand the heat.
-
Getting Divorced? Beware of Hidden Tax Traps as You Divide AssetsDividing assets fairly in a divorce means looking beyond their current values and asking whether they'll create tax liabilities — or tax breaks — in the future.
-
All-You-Can-Eat Buffets: Can You Get Kicked Out for Eating Too Much?Don't plan on practicing your competitive-eating skills at an all-you-can-eat buffet. You can definitely get kicked out. Plus, don't be a jerk.
-
5 Tips for Investing in the Trump PresidencyWith Trump back in office, expectations are high the bull market will continue. Here's how investors can prepare.
-
A Social Security Storm Is Gathering: Here's Your Safety PlanIf Social Security reserves are depleted by 2033, as predicted, future benefits could be cut by as much as 21%. Here’s how to weather the impending storm.
-
What a Second Trump Term Means for Investing in Water SafetyA new administration focused on deregulation could change the scope of today's water protections. So, what does that mean for the investors who support them?
-
How to Avoid These 10 Retirement Planning MistakesMany retirement planning mistakes are easily avoidable. Here are 10 to have on your radar so you don't end up running out of money in your golden years.
-
Before the Next Time Markets Sink, Do Your Lifeboat DrillsAn eventual market crash is inevitable. We can't predict when, but preparing for the ups and downs of investing is imperative. Here's what to do.
-
What Are Passive Income Strategies and How Can I Use Them in 2025?An extended period of rising prices has everyone looking for a little more cash to make ends meet.
