On Thursday, Oppenheimer reiterated its Outperform rating on Viking Therapeutics (NASDAQ:VKTX) with a price target of $138.00. The firm's analysis highlights a persistent issue of limited access to GLP1 drugs for obesity, attributed to supply shortages and lack of reimbursement. Despite improvements in manufacturing capacity, barriers such as restrictive formulary coverage continue to limit drug access.
The firm pointed to a recent study underscoring the potential health benefits of wider access to these medications. Viking Therapeutics' VK2735, available in both oral and subcutaneous (subQ) forms, could offer a solution to broaden the availability of GLP1 drugs. The drug's profile is set to be further detailed in an upcoming presentation on November 3 at Obesity Week, an event that could underscore VK2735's potential to lead its class.
The analyst from Oppenheimer expressed optimism about Viking Therapeutics' position in the market, suggesting that VK2735 could provide significant value to patients and shareholders alike. The upcoming update at Obesity Week is anticipated to strengthen the case for VK2735's best-in-class status.
The commentary from Oppenheimer also supports the idea that improving access to GLP1 drugs is not just a health imperative but also a potential value driver for Viking Therapeutics in the over-the-counter (OTC) market. The firm's stance remains positive on the stock's prospects, reflecting a belief in the potential market impact of VK2735 and the importance of addressing access issues in the GLP1 drug class.
In other recent news, Viking Therapeutics has reported positive results from its Phase 1b clinical trial of VK0214, a drug intended for patients with X-linked adrenoleukodystrophy (X-ALD). H.C. Wainwright has maintained a Buy rating on the company, highlighting the potential of VK0214. The company has also reported promising results from Phase 2 trials of VK2735, an oral treatment for obesity, and VK2809 for NASH and fibrosis. Analyst firms such as Oppenheimer, Morgan Stanley, JPMorgan, and Truist Securities maintain a positive outlook on Viking Therapeutics.
The company is also exploring the potential of VK2735 transitioning to an over-the-counter status, which could attract larger partners looking to enter the obesity market. Viking Therapeutics is preparing for an end-of-Phase 2 meeting with the FDA to discuss the registration path for VK2809 and is planning to advance VK2735 into Phase 3 development for obesity.
Oppenheimer has maintained an Outperform rating on Viking Therapeutics, highlighting the potential for Viking's oral GLP1 drug, VK2735, should it be made available over-the-counter (OTC). Morgan Stanley has reaffirmed its positive stance on Viking Therapeutics with an Overweight rating and a steady price target of $105.00.
InvestingPro Insights
Viking Therapeutics' (NASDAQ:VKTX) strong market position and potential for growth, as highlighted by Oppenheimer's analysis, are further supported by recent InvestingPro data. The company's market capitalization stands at an impressive $7.3 billion, reflecting investor confidence in its future prospects. This valuation is particularly noteworthy given that Viking is not yet profitable, with an operating income of -$124.68 million over the last twelve months.
Despite the current lack of profitability, InvestingPro Tips reveal that 5 analysts have revised their earnings upwards for the upcoming period, suggesting growing optimism about Viking's financial trajectory. This aligns with Oppenheimer's positive outlook on VK2735's potential market impact.
The company's financial health appears robust, with InvestingPro Tips indicating that Viking holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations. This strong financial position could provide the company with the flexibility needed to continue developing and potentially commercializing VK2735.
Investors should note that Viking has demonstrated an exceptional return over the past year, with a one-year price total return of 514.27%. This performance underscores the market's enthusiasm for Viking's pipeline, particularly VK2735.
For those seeking a deeper understanding of Viking Therapeutics' potential, InvestingPro offers 11 additional tips, providing a comprehensive view of the company's financial and market position.
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