On Tuesday, Viking Therapeutics (NASDAQ:VKTX) saw its stock price target significantly increased by Stifel from $35.00 to $80.00, while the firm maintained a Buy rating on the shares. The adjustment follows the company's early release of Phase 2 VENTURE study results for its injectable drug VK2735, which is being developed as a treatment for obesity.
The released data revealed VK2735's potent efficacy, showcasing up to a 13.1% placebo-corrected mean reduction in body weight at the highest dose tested. Furthermore, 88% of participants achieved more than 10% weight loss. The drug's safety profile was consistent with previous trials, with the majority of gastrointestinal-related side effects classified as mild.
The rate of nausea was notably low, not exceeding 5% at any point after the initial week of treatment. Discontinuation rates were also comparable to those observed with placebo at most dosage levels, although there was one serious adverse event related to dehydration at the 5mg dose.
Stifel highlighted the drug's competitive profile in comparison to other available anti-obesity medications (AOM). The analyst noted that the drug's performance did not show signs of plateauing at higher doses, which is a positive indicator of its potential effectiveness. The anticipation of forthcoming oral data in the first quarter of 2024 is expected to further bolster the drug's profile.
Viking Therapeutics is currently focusing on the independent development of VK2735, with plans to engage in a Type-C meeting with the FDA to discuss next steps. The company's development strategy indicates a preference for advancing the drug on its own, rather than seeking immediate business development partnerships.
The raised target price by Stifel reflects the firm's confidence in VK2735's standing as a potentially best-in-class treatment for obesity, with the upcoming oral data only expected to enhance the drug's prospects. Viking Therapeutics' stock is likely to be watched closely by investors as the company progresses towards further clinical milestones.
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