On Thursday, BTIG maintained a Buy rating on Viking Therapeutics (NASDAQ:VKTX) with a steady price target of $125.00. The firm's focus was on the upcoming presentation of higher dose oral VK2735 data at Obesity Week, scheduled for the evening of November 3. The anticipation is that 5-6% placebo-adjusted weight loss at around 30 days, coupled with gastrointestinal adverse events (AEs) not exceeding 40%, could position Viking competitively with other oral incretin treatments in the obesity market.
Viking Therapeutics recently reported its third-quarter earnings for 2024, and the attention is now on the potential impact of their oral VK2735 data on the company's valuation. BTIG predicts the stock could see an increase of 15-20% in their base case scenario, with the possibility of a higher surge if the weight loss data exceeds expectations.
The firm also highlighted Viking's unique position in the crowded obesity treatment landscape, which includes subcutaneous and oral GLP-1/GIP assets that have shown tolerable safety profiles so far. The potential for monthly maintenance dosing and amylin assets, which are expected to enter clinical trials in 2025, also contribute to what BTIG sees as Viking's "scarcity value."
Looking forward, BTIG is anticipating the commencement of Phase 2 studies for the oral VK2735 in the fourth quarter of 2024. This is in addition to a pivotal Phase 3 for the subcutaneous version of VK2735, which is expected to follow after an end-of-Phase-2 meeting in the same quarter. These developments could be significant milestones for Viking Therapeutics in the near future.
In other recent news, Viking Therapeutics reported its third-quarter financial results of 2024, revealing a net loss of $24.9 million. The company also highlighted its strong cash position, with $930 million in cash and equivalents, which backs its strategic plans for future clinical trials. Research and development expenses increased to $22.8 million, while general and administrative expenses rose to $13.8 million.
Viking Therapeutics has also provided updates on its clinical programs, reporting 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. Additionally, it is preparing for an end of Phase 2 meeting with the FDA and is considering collaboration with larger pharmaceutical partners for the NASH program.
InvestingPro Insights
Viking Therapeutics' (NASDAQ:VKTX) recent developments in the obesity treatment market align with several key financial metrics and insights from InvestingPro. The company's market capitalization stands at $6.69 billion, reflecting investor optimism about its potential in the competitive obesity treatment landscape.
InvestingPro Tips highlight that Viking holds more cash than debt on its balance sheet, which could provide financial flexibility for its ongoing clinical trials and potential market entry. This strong financial position is crucial as the company advances its oral VK2735 and other pipeline products.
Additionally, InvestingPro data shows a remarkable 467.04% price total return over the past year, underscoring the market's positive reaction to Viking's progress in developing novel obesity treatments. This aligns with BTIG's bullish outlook and the potential for further stock appreciation following the presentation of higher dose oral VK2735 data.
However, it's important to note that Viking is not currently profitable, with an adjusted operating income of -$124.68 million over the last twelve months. This is consistent with the InvestingPro Tip indicating that analysts do not anticipate the company to be profitable this year, which is typical for biotech companies in the development stage.
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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