Joon Lee of Truist Financial sets a high price target of $120 for Viking Therapeutics (NASDAQ:VKTX), indicating a 72.6% potential increase.
Viking’s lead candidate, VK2735, shows superior weight reduction capabilities, positioning it as a potential blockbuster in the obesity drug market.
The weight-loss drug market is projected to expand to $158 billion by 2032, with VK2735 potentially generating up to $30 billion in annual sales.
Joon Lee of Truist Financial has set a high price target of $120 for Viking Therapeutics (NASDAQ:VKTX), suggesting significant optimism with a 72.6% increase from its current price of $69.525. This analysis, published on Thursday, May 16, 2024, underscores the potential growth of VKTX in the eyes of Truist Financial analysts. This optimistic outlook is particularly noteworthy in the context of a report suggesting that Roche’s data falls short of Viking’s weight loss drug, VK2735, as per Truist’s assessment. Viking Therapeutics is a clinical-stage biopharmaceutical company focused on the development of novel therapies for metabolic and endocrine disorders.
Viking Therapeutics’ lead candidate, VK2735, aimed at addressing obesity, has placed the company in the spotlight. With a market capitalization of approximately $8 billion, Viking is developing VK2735 as both a subcutaneous injection and an oral pill. This drug, a dual GLP-1/GIP agonist, is undergoing a mid-stage study for its injectable form and an early-stage study for its oral variant. VK2735 has demonstrated superior weight reduction capabilities in clinical trials, positioning it as a potential blockbuster in the highly competitive obesity drug market. The demand for effective obesity treatments is increasing, offering a vast opportunity for Viking Therapeutics despite the challenges from existing competition.
The optimism surrounding VK2735 is further bolstered by its potential to become one of the top three weight-loss medications in terms of sales. Analysts project that the weight-loss drug market could expand to an estimated $158 billion by 2032, representing an unprecedented commercial opportunity for a non-COVID product within the pharmaceutical industry. VK2735, in particular, is believed to have the potential to generate up to $30 billion in annual sales, contingent upon several factors including the competitive landscape, the outcomes of pivotal-stage data, and the ongoing obesity epidemic’s trajectory.
Viking Therapeutics’ VK2735 has shown considerable promise in phase 2 clinical trials, outperforming existing market drugs with a significant weight reduction of 14.7% in individuals with obesity, compared to a mere 1.7% reduction in those administered a placebo. This positions Viking as a noteworthy contender in the biotech sector, especially for those interested in the obesity treatment market. However, the company faces stiff competition from established big pharma companies that already have a strong foothold in the market. This competitive landscape poses a significant challenge for Viking as it seeks to commercialize its lead candidate and gain market share.
Investors considering Viking Therapeutics should weigh the potential of VK2735 against the risks associated with the company’s ability to navigate a competitive market and successfully commercialize its drug. The promising data from the phase 2 clinical trials certainly positions Viking as a noteworthy contender in the biotech sector, especially for those interested in the obesity treatment market.
