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
-
How the 2025 Child Tax Credit Rules Impact Single ParentsTax Credits New changes to family tax credits, like the Child Tax Credit, will impact the eligibility of some households.
-
Five Social Security Myths That Can Cost You ThousandsBefore you collect Social Security benefits, make sure you don't believe any of these falsehoods.
-
How to Build Your Financial Legacy Three Piggy Banks at a TimeA wealth adviser shares a childhood saving technique that taught him lessons of stewardship, generosity and responsibility and helped him answer the question we all need to answer to define our lives by impact rather than greed: 'What is this all for?'
-
Which of These Four Withdrawal Strategies Is Right for You?Your retirement savings may need to last 30 years or more, so don't pick a withdrawal strategy without considering all the options. Here are four to explore.
-
July CPI Report Ignites a Risk-On Rally: Stock Market TodayMarket participants price out worst-case scenarios for tariffs and inflation and will now turn their attention to employment and growth.
-
July CPI Report Boosts Rate-Cut Odds: What the Experts SayThe July CPI report shows that tariffs are having a slight impact on inflation, though not enough to keep the Fed from cutting interest rates.
-
DST Exit Strategies: An Expert Guide to What Happens When the Trust SellsUnderstanding the endgame: How Delaware statutory trust dispositions work, what investors can expect and why the exit is probably more important than the entrance.
-
Think Selling Your Home 'As Is' Means You'll Have No Worries? Think AgainThere are significant risks and legal obligations involved in selling a home 'as is' and by yourself, without a real estate agent.
-
Stocks Slip Ahead of July CPI Report: Stock Market TodayThe latest inflation updates roll in this week and Wall Street is watching to see how much of an impact tariffs are having on cost pressures.
-
What the OBBB Means for Social Security Taxes and Your Retirement: A Wealth Adviser's GuideFor Americans in lower- and middle-income tax brackets, the enhanced deduction for older people reduces taxable income, shielding most of their Social Security benefits from being taxed.
