Stock Surge for Viking Therapeutics Today Explained
In the biotech sector, Viking Therapeutics (VKTX) has seen a notable increase in its share price, with a 6.6% rise as of 1:56 p.m. ET Wednesday afternoon. This upward move is believed to be driven by day traders taking advantage of Roth Capital Partners' positive coverage and the potential asymmetric risk-to-reward opportunity in VKTX's stock.
Viking Therapeutics is currently advancing two promising drug candidates: VK2735, a dual agonist of GLP-1 and GIP receptors, developed to treat obesity and related metabolic disorders, and VK2809, a drug targeting non-alcoholic steatohepatitis (NASH), a liver disease with no FDA-approved therapies yet.
VK2735 is making strides in its development, with phase 3 clinical trials, known as the VANQUISH program, now underway. This program includes two large-scale randomized, double-blind, placebo-controlled studies, aiming to test the drug's efficacy in obese or overweight adults, some with type 2 diabetes. The trials will administer subcutaneous injections once weekly for 78 weeks, testing three different doses against placebo.
The preceding phase 2 VENTURE study showed up to 14.7% mean body weight reduction from baseline and a 13.1% reduction compared to placebo after 13 weekly doses. This weight loss was statistically significant from the first week and sustained through the study period, including follow-ups at 4 and 7 weeks post-treatment. With phase 3 trials underway and additional studies planned to assess an oral tablet formulation and monthly maintenance dosing, VK2735 holds strong promise as a novel obesity treatment.
VK2809, on the other hand, recently met phase 2b endpoints with demonstrated efficacy in fibrosis reduction, a key measure in NASH progression. The NASH market is expected to be worth approximately $40 billion by 2030, presenting a significant unmet medical need. If VK2809 achieves successful late-stage trial results and regulatory approval, it could potentially fill this gap.
Viking Therapeutics has secured a manufacturing agreement with CordenPharma to ensure scalable production of both VK2735 and VK2809, which de-risks the pathway toward commercialization.
Analysts are generally bullish on VKTX, with 17 of 18 ratings being "Buy," including 5 "Strong Buy" recommendations. The average price target stands around $90.26, implying significant upside potential from current stock prices. Upcoming phase 3 readouts for VK2735 expected in Q4 2025 and VK2809 in Q1 2026 are considered pivotal binary events that could greatly impact the company's valuation.
Roth Capital Partners set a price target of $32 per share for VKTX, implying a potential upside of 55% for the biotech. With most of the biotech's bulls aware of the potential for VK2735 and VK2809 to be undervalued at the current time, this price target could be conservative.
In summary, VKTX's VK2735 has demonstrated robust efficacy in obesity treatment and is advancing into pivotal late-stage trials, while VK2809 shows promising results in a large, underserved NASH market. Both candidates have significant future potential contingent on positive phase 3 outcomes and regulatory approvals. Institutional interest and analyst optimism underscore the high-reward nature of these programs in metabolic and endocrine disorders.
- The biotech sector's rising star, Viking Therapeutics (VKTX), is currently advancing two drug candidates, VK2735 and VK2809, which hold promise for health-and-wellness conditions like obesity and non-alcoholic steatohepatitis (NASH.
- VK2735, a dual agonist of GLP-1 and GIP receptors, is moving forward with phase 3 clinical trials, called the VANQUISH program, involving potential investments for those seeking asymmetric risk-to-reward opportunities in the finance and investing sectors.
- A significant portion of the medical-conditions market, such as NASH, currently lacks FDA-approved therapies, offering a business opportunity for companies like Viking Therapeutics that develop innovative treatments.
- The positive coverage from financial analysts, like Roth Capital Partners, and institutional interest in VKTX's drug candidates indicate a high-reward nature for those investing in metabolic and endocrine disorders, with potential returns exceeding the average price target of $90.26.
