Biotech firm Viking Therapeutics (NASDAQ:VKTX) extended its last week’s rally on Monday, closing 7.2% higher on the day. The company has now gained over 30% across the past 5 trading sessions.
Viking has positioned itself as a significant contender or possible acquisition target in the emerging market for weight loss medications. According to analysts, VKTX is among a number of firms vying for a share of a market anticipated to be valued at $100 billion by the decade's end.
The company specializes in injectable treatments similar to those offered by pharmaceutical giants Eli Lilly and Novo Nordisk, which have been at the forefront of the weight loss drug industry's boom despite their high costs and the challenges of securing insurance coverage.
Wall Street analysts have highlighted Viking's experimental obesity drug as potentially the leading option in its class.
Early results from a phase 2 trial showed that Viking's injectable treatment could lead to greater weight loss than Eli Lilly's Zepbound, capturing the attention of investors.
Following the release of preliminary data from this trial on Tuesday, Viking's stock price surged by 120%.
Year-to-date, VKTX gained a whopping 400%.