By Vlad Schepkov
Shares of Viking Therapeutics (NASDAQ:VKTX) are trading down over 15% late into Tuesday's session, in a move linked to the disappointing clinical data posted by VKTX's competitor Altimmune, Inc. (NASDAQ:ALT).
Altimmune's weight loss drug candidate pemvidutide failed to show a drop in fasting glucose or HbA1c at week 12, despite demonstrating a strong weight loss - invigorating fears VKTX's own weight loss candidate, VK2735, may run into similar issues.
Analysts at Truist Securities took to the defense of Viking Therapeutics in the face of the sell-off, noting they see "minimal read-through from pemvidutide's topline data to VK2735."
They expanded that "VK2735, unlike pemvidutide (GLP1/glucagon dual agonist), does not directly activate glucagon. Therefore, there are minimal concerns around adversely impacting the glycemic parameter in patients." The analysts added that "GIP agonism is reported to attenuate the nauseating effects of GLP-1 agonism," and they believe "VK2735 will likely have better tolerability profile compared to pemviduti
They concluded that today's major sell-off in VKTX "is unwarranted and an attractive opportunity to add," as Truist reiterates the shares at "Buy" with a $28 price target.
Shares of VKTX are trading over 15% lower late on Tuesday. ALT is down over 54%.