Viking Therapeutics Stock Swings Wildly After Weight-Loss Drug Data
Viking Therapeutics stock is volatile Monday after the pharma company released positive data for its weight-loss drug. Here's what you need to know.
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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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
-
Do You Really Need All Those Phone Plan Perks?Unlimited data plans now come bundled with streaming, travel perks and device deals — but many people pay for extras they rarely use.
-
The New Average Divorce Rate By Age: Are You in the Risk Zone?While the overall divorce rate has seen a small but steady decline, gray divorces have been on the rise since the 1990s.
-
Is the Housing Market's 'Lock-In Effect' Finally Starting to Ease?As mortgage rates stabilize and fewer owners hold ultra-low loans, the lock-in effect may be losing its grip.
-
Today's Senior Living Communities Are Not Your Grandma's 'Old Folks' Home': An Expert Guide to Shopping for the Right FitSenior living facilities have improved and are as diverse as the people who inhabit them. Now, they're more than just a place to go — they're a place to grow.
-
3 Common Misconceptions About Working With a Financial PlannerThink financial planners are only for the wealthy and that AI can replace human advice? Nope. Even people with moderate wealth need professional advice.
-
Should You Consider Investing in the Quantum Computing Sector? This Investment Adviser Has Some SuggestionsInvestors interested in quantum computing could consider ETFs focused on cloud services enabling small businesses to use big technology.
-
S&P 500 Hits New High Before Big Tech Earnings, Fed: Stock Market TodayThe tech-heavy Nasdaq also shone in Tuesday's session, while UnitedHealth dragged on the blue-chip Dow Jones Industrial Average.
-
Yes, Artificial Intelligence Stocks Are BoomingIt's fair to ask about the latest tech boom, "Is it really different this time?"
-
I'm an Estate Planning Attorney: These Are the Estate Plan Details You Need to Discuss (And What to Keep Private)Gen Xers and Millennials would like to know if they're going to inherit (and how much), but Baby Boomers in general don't like to talk about money. What to do?
-
I'm a Financial Adviser: This Is How You Can Minimize the Damage of Bad Market Timing at RetirementPoor investment returns early in retirement on top of withdrawals can quickly drain your savings. The ideal plan helps prevent having to sell assets at a loss.
-
'You Owe Me a Refund': Readers Report Challenging Their Attorneys' BillsThe article about lawyers billing clients for hours of work that AI did in seconds generated quite a response. One law firm even called a staff meeting.
