On Tuesday, Viking Therapeutics (NASDAQ:VKTX) saw its price target increased by an Oppenheimer analyst to $138 from the previous $116, while the stock's rating remains at Outperform. The adjustment follows Viking's announcement of encouraging preliminary outcomes from its Phase 1 trial of VK2735, an oral treatment being developed for obesity.
The study showed statistically significant weight loss over a 28-day period at the highest dose of 40mg when compared to a placebo group. The top dose resulted in a 5.3% weight reduction versus 2.1% for the placebo group, with a p-value of 0.0006, indicating a strong statistical significance. Notably, the placebo group's performance was considered unusually effective.
The trial also reported favorable tolerability for VK2735. Gastrointestinal (GI) events were either mild or moderate, and the overall GI tolerability was comparable between the drug and the placebo. This positive safety profile supports the potential for the drug to move into Phase 2 trials.
With these results, Viking Therapeutics is believed to have various options to explore additional dosing regimens. The company could potentially optimize the safety and efficacy profile of VK2735, including the possibility of transitioning patients from oral to subcutaneous dosing methods.
The analyst's updated model reflects the new price target of $138, which signifies a notable increase from the previous target of $116. This update is grounded in the promising initial results from the Phase 1 trial and the expanded opportunities for Viking's obesity program.
InvestingPro Insights
Following the recent optimistic analyst update on Viking Therapeutics, it's beneficial to consider the company's financial health and market performance. According to InvestingPro data, Viking Therapeutics has a market capitalization of $9.25 billion, reflecting its size and market value. Despite not being profitable over the last twelve months, with a negative P/E ratio of -93.01, the company has seen a remarkable one-year price total return of 681.81%, highlighting significant investor interest and stock momentum.
Two InvestingPro Tips that stand out in the context of Viking Therapeutics are the company's high return over the last year and the strong return over the last three months, which could be attributed to investor optimism surrounding the company's clinical developments. These returns, alongside a price uptick of 480.21% over the last six months, suggest a robust investor sentiment. It's worth noting that Viking operates with a moderate level of debt and its liquid assets exceed short-term obligations, indicating a stable financial position for the near term.
Prospective investors and current shareholders may find additional insights and metrics on Viking Therapeutics, including more InvestingPro Tips, by visiting https://www.investing.com/pro/VKTX. For those considering a deeper analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes a total of 14 InvestingPro Tips for Viking Therapeutics.
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