Exciting Potential for Viking Therapeutics as Stock Gains Momentum

Viking Therapeutics Positioned for Growth with Potential Drug Breakthroughs

Analysis from JPMorgan by Hardik Parikh has initiated coverage on Viking Therapeutics Inc (NASDAQ: VKTX), presenting an Overweight rating alongside an ambitious price target of $80 for December 2025. This forecast suggests the stock could soar by approximately 45% from its current valuation of $54.65. The optimism surrounding this projection primarily revolves around Viking's innovative obesity treatment candidate, oral-2735, which may significantly impact the rapidly evolving GLP-1 marketplace.

Oral-2735: A Potential Revolution in Obesity Management

In the view of JPMorgan, oral-2735 possesses the potential to become a highly competitive entity within the GLP-1 treatment market, primarily due to its impressive tolerability levels. Analyst Parikh refers to Phase 1 clinical trial data, which indicates that lower doses of oral-2735 exhibit competitive efficacy with minimal gastrointestinal side effects.

Furthermore, there is optimism for higher dose cohorts, which could not only yield greater efficacy but also maintain an outstanding tolerability profile. With projections indicating that the U.S. GLP-1 market could reach $120 billion by 2030, Parikh believes oral-2735 could capture around 10% of the oral obesity segment. This competitive positioning suggests that the market may not yet fully appreciate the capabilities of oral-2735, positioning Viking's stock for a healthy increase.

Key Events Ahead: Obesity Week in November

JPMorgan has placed Viking Therapeutics on its “positive catalyst watch” leading up to the Phase 1 readout set for Obesity Week in November 2024. Parikh recommends that investors consider maintaining long positions on VKTX shares as the readout approaches. He predicts that the ensuing data could prompt a significant surge in stock prices, with an expected jump of 30-60% in the wake of the latest findings.

Additionally, with oral-2735 anticipated to enter the market by 2030, JPMorgan estimates U.S. sales could reach $1 billion by 2035. Featuring a compelling competitive profile and favorable tolerability, Viking Therapeutics is poised to emerge as a crucial player in the booming obesity treatment market.

Looking Ahead: VKTX's Future in Obesity Treatment

For investors keen on Viking Therapeutics, the data release tailored for oral-2735 could signal a pivotal moment. Parikh perceives significant upside potential for VKTX stock as the broader market begins to recognize the promise of oral-2735. The excitement surrounding this drug could translate into tangible gains for stakeholders.

As Viking Therapeutics navigates through these promising developments, investors remain optimistic about the potential expansion of its product offerings and the company’s growing role within the healthcare landscape.

Frequently Asked Questions

What is oral-2735?

Oral-2735 is an obesity medication developed by Viking Therapeutics under investigation for its potential efficacy in the GLP-1 market.

Why is JPMorgan optimistic about VKTX stock?

The optimistic outlook primarily stems from the drug's potential as a groundbreaking treatment with significant market demand and favorable clinical trial results.

When can we expect the Phase 1 readout for oral-2735?

The Phase 1 readout is scheduled for November 2024 during Obesity Week.

What are the market projections for the GLP-1 sector?

The U.S. GLP-1 market is projected to exceed $120 billion by 2030, with oral-2735 expected to capture a notable market share.

How could the results from the Phase 1 trial impact the stock price?

Positive results could lead to a significant rise in VKTX’s stock value, potentially increasing by 30-60% following the data release.

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