Viking Therapeutics Trades Well Below Its Wall Street Targets. Here's the Skeptics' Case.
Investors always need to appreciate risk before buying into any clinical-stage biopharmaceutical company.
The consensus price target for Viking Therapeutics (NASDAQ: VKTX) stands at around $92, suggesting a potential 162% increase from its current stock price. While this presents an appealing investment opportunity, skeptics question whether it is justified. The stock's success hinges on its lead drug, VK2735, a dual GLP-1 and GIP agonist being developed for obesity and type 2 diabetes.
VK2735 boasts two potential advantages over competitors: a steeper rate of weight loss and a unique dual-formulation therapy (oral and subcutaneous). The dual formulation could allow patients to achieve substantial weight loss through a subcutaneous dose, followed by a more convenient oral maintenance treatment. These attributes could help VK2735 capture market share in a highly competitive landscape.
Investors are eagerly awaiting the results of its Phase 3 trials for VK2735's subcutaneous formulation, expected in the second half of 2027, and the oral formulation slated to begin later this year, with results anticipated in 2028/2029. Moreover, the company is set to release the preliminary findings of a small Phase 1 maintenance trial involving 180 adults to assess optimal dosing regimens.
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