On Tuesday, Viking Therapeutics (NASDAQ:VKTX) saw its share price target increased to $95.00 from $80.00 by an analyst at Stifel while the Buy rating on the stock was maintained. The adjustment follows Viking's announcement of Phase 1 data for its oral medication VK2735, which showed early efficacy surpassing expectations and a favorable tolerability profile compared to competitors.
VK2735, the company's latest oral GLP-1/GIP dual agonist program, demonstrated a 3.3% efficacy at the highest dose of 40 mg after four weeks, without any signs of efficacy plateauing. This performance aligns with the greater than 3% range observed in similar oral treatments already reported by other companies.
The significance of these results lies in the potential market expansion, maintenance, or transition from injectable treatments for patients.
The medication's tolerability profile was highlighted as particularly noteworthy, with gastrointestinal (GI) effects being predominantly mild rather than moderate. In comparison, competing drugs have shown moderate adverse effects (AEs) in the 45-70% range. The mild nature of VK2735's side effects may allow for further dose exploration and enhance patient compliance.
The analyst emphasized that VK2735's unique position as the first oral GLP-1/GIP dual agonist program could significantly strengthen Viking's product offering. The flexibility in dosing caters to a diverse patient population, potentially broadening the drug's market reach.
The raised stock price target reflects the analyst's confidence in Viking Therapeutics' ability to leverage VK2735's promising trial outcomes to expand its market presence and offer a competitive, patient-friendly treatment option.
InvestingPro Insights
In light of the recent developments with Viking Therapeutics, current InvestingPro data sheds additional light on the company's financial health and market performance. With a market capitalization of $9.52 billion, Viking operates with a high Price / Book multiple of 21.72 as of the last twelve months ending Q4 2023, indicating a premium valuation by the market.
This is further emphasized by a negative P/E ratio of -88.09, reflecting that the company is not currently profitable. Despite this, the stock has experienced a remarkable 1-year price total return of 681.81%, showcasing significant investor optimism.
Two InvestingPro Tips that are particularly relevant to Viking Therapeutics are the company's weak gross profit margins and the fact that analysts do not expect the company to be profitable this year. These insights could be crucial for investors considering the stock's future performance in relation to its current valuation and market expectations.
With additional insights available, interested investors can find more InvestingPro Tips by visiting https://www.investing.com/pro/VKTX, and for those looking to delve deeper, use coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 14 additional InvestingPro Tips available for Viking Therapeutics, providing a comprehensive view of the company's financial position and market potential.
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