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
-
Ask the Editor — Tax Questions on Inherited IRAsAsk the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on the rules on inheriting IRAs.
-
I Asked Experts When It's Worth Splurging on Beauty and Skincare — and When You Can SaveSmart Shopping Experts agree that while you don't have to spend three figures on your products, some higher-priced items have value.
-
Recent Market Volatility Offers Valuable Lessons for InvestorsStocks will always rise and fall, but strategic investors can benefit through dollar-cost averaging, rebalancing in down markets and taking the long view.
-
Retiring Early? This Strategy Cuts Your Income Tax to ZeroWhen retiring early, married couples can use this little-known (and legitimate) strategy to take a six-figure income every year — tax-free.
-
Ditch the Golf Shoes: Your Retirement Needs a Side GigA side gig in retirement can help combat boredom, loneliness and the threat of inflation eroding your savings. And the earlier you start planning, the better.
-
The Best Aerospace and Defense ETFs to BuyThe best aerospace and defense ETFs can help investors capitalize on higher government defense spending or hedge against the potential of a large-scale conflict.
-
Roth IRA Conversions in the Summer? Why Now May Be the Sweet SpotConverting now would enable you to spread a possible tax hit over more than one payment while reducing future taxes.
-
A Financial Expert's Three Steps to Becoming Debt-Free (Even in This Economy)If debt has you spiraling, now is the time to take a few common-sense steps to help knock it down and get it under control.
-
I'm an Insurance Expert: This Is How Your Insurance Protects You While You're on VacationHere are three key things to consider about your insurance (auto, property and health) when traveling within the U.S., including coverage for rental cars, personal belongings and medical emergencies.
-
Stock Market Today: It's 'Most Sectors Go' Ahead of Independence DayThe resilience trade continues to work, even for sectors and stocks with specific uncertainties.
