On Thursday, Truist Securities reaffirmed its Buy rating and $120.00 price target for Viking Therapeutics (NASDAQ:VKTX) stock. The positive stance comes as competitor data has fallen short of expectations, boosting confidence in Viking's VK2735 treatment.
Truist's analysis suggests that the lackluster performance of rival drugs from companies like Amgen (NASDAQ:AMGN) and Novo Nordisk (NYSE:NVO) has highlighted the potential of VK2735. According to InvestingPro data, analyst targets range from $74 to $164, with a strong consensus recommendation of 1.4 (Strong Buy).
Viking Therapeutics recently announced the initiation of the Phase 2 VENTURE-Oral study for VK2735 and plans to commence a Phase 3 trial in the first half of 2025. The Phase 2 study will consist of seven arms, including six different doses of VK2735 and a placebo, with 40 patients per arm. The same tablet formulation from the Phase 1 trial will be used in this upcoming study. Although the specific doses for the Phase 2 trial have not been disclosed, expectations are that they may exceed the 100mg dose deemed well-tolerated in the Phase 1 trial.
The company's VK2735 has shown a favorable profile, which has informed the dosing strategy for the upcoming trials. For instance, the highest dose in the Phase 1 subcutaneous VK2735 study was 10mg, yet the Phase 2 VENTURE-SQ trial tested up to 15mg, adhering to its well-tolerated nature. Topline data from the Phase 2 oral study is anticipated in the second half of 2025.
Despite a strong performance in 2024, where Viking Therapeutics' stock rose by 115%, shares experienced a significant pullback, dropping approximately 55% from a peak of around $94 per share in March. This decline was attributed to increased competition in the GLP-1 space, concerns over compounding practices, and a less favorable environment for mergers and acquisitions. InvestingPro data shows the company maintains a strong financial health score of 2.52 (GOOD) and an impressive current ratio of 36.47, indicating robust liquidity.
With the next earnings report due on February 5, 2025, investors seeking deeper insights can access comprehensive analysis through InvestingPro's detailed research reports, available for over 1,400 US stocks including VKTX. Truist Securities remains optimistic about VK2735's prospects, maintaining its position as a best-in-class contender in the GLP-1 space and reiterating a Buy rating for Viking Therapeutics' stock.
In other recent news, Viking Therapeutics has launched a Phase 2 clinical trial for VK2735, an oral medication for obesity and related metabolic disorders. The company also reported positive results from its Phase 2b clinical trial of VK2809 for treating non-alcoholic steatohepatitis. Viking Therapeutics has experienced a surge in its shares following disappointing results from Novo Nordisk's obesity drug trial, which benefited competitors in the sector.
However, Viking's shares fell after Merck (NS:PROR) inked a deal with Hansoh Pharma, introducing a potential competitor to Viking's metabolic disorder candidate, VK2735. Viking Therapeutics also received an Overweight rating from Piper Sandler, which highlighted the promising results of VK2735's Phase 2 study. B.Riley initiated coverage on Viking Therapeutics with a Buy rating and a price target of $109.00, showing confidence in VK2735's potential to significantly impact the treatment landscape for obesity, type 2 diabetes, and metabolic dysfunction-associated steatohepatitis.
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