On Monday, Jefferies maintained its Buy rating and $110.00 price target for Viking Therapeutics (NASDAQ:VKTX), following updates from the company's management at Obesity Week. The focus was on Viking's drug candidate VK2735, which is being developed as both an oral and subcutaneous (subq) GLP1/GIP peptide for weight management.
The management's presentation highlighted the drug's promising data. Notably, the high doses of VK2735 have shown class-leading weight loss results at the four-week mark, alongside favorable gastrointestinal (GI) tolerability. This outcome has bolstered confidence in the drug's progression to a Phase 2a clinical trial in the fourth quarter of 2024, where even higher doses will be assessed.
Additionally, new details regarding VK2735's pharmacokinetic (PK) profile were shared, indicating the potential for monthly dosing. This information comes ahead of the drug's anticipated move into Phase 3 trials, which is expected soon after the End of Phase 2 (EOP2) meeting with regulatory authorities in the fourth quarter of 2024.
The analyst from Jefferies expressed optimism about the drug's prospects, citing the oral poster presentation could drive upside potential due to the combination of significant weight loss and GI tolerability demonstrated by VK2735. The drug's profile continues to suggest a competitive edge as it advances through the clinical development stages.
Viking Therapeutics' focus on developing VK2735 for weight management comes at a time when obesity remains a significant health challenge globally. The company's progress and the positive feedback from Jefferies point to a continued interest in the drug's development and potential market impact.
In other recent news, Viking Therapeutics reported its third-quarter financial results for 2024, revealing a net loss of $24.9 million. Research and development expenses increased to $22.8 million, while general and administrative expenses rose to $13.8 million.
The company's cash and equivalents stood at a strong $930 million, supporting its strategic plans for future clinical trials. BTIG, an independent firm, maintained a Buy rating on Viking Therapeutics, focusing on the upcoming presentation of oral VK2735 data at Obesity Week. The firm anticipates that this data could position Viking competitively in the obesity treatment market.
In terms of clinical developments, Viking reported positive trial data for VK2735 and VK2809. The company plans to advance VK2735 into Phase 3 and initiate a Phase 2 obesity study for the same. BTIG is also anticipating the commencement of Phase 2 studies for oral VK2735 in the fourth quarter of 2024.
InvestingPro Insights
Viking Therapeutics' (NASDAQ:VKTX) promising developments in its weight management drug candidate VK2735 are reflected in the company's recent market performance. According to InvestingPro data, Viking has shown a remarkable 590.81% price total return over the past year, indicating strong investor confidence in the company's potential. This aligns with the positive outlook from Jefferies and the promising clinical data presented at Obesity Week.
Despite the optimism surrounding VK2735, it's important to note that Viking Therapeutics is currently not profitable, with an adjusted operating income of -$133.97 million over the last twelve months. This is consistent with the company's stage of development, as it invests heavily in research and clinical trials.
InvestingPro Tips highlight that Viking holds more cash than debt on its balance sheet, which is crucial for a biotechnology company in the development phase. This financial stability may provide the necessary runway for Viking to advance VK2735 through upcoming clinical trials and potentially to market.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Viking Therapeutics, providing a deeper understanding of the company's financial health and market position.
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