Griffin Bets Big on Viking Therapeutics Amid Drug Surge

In a recent report, Citadel's Ken Griffin significantly increased his investment in Viking Therapeutics, attracting attention amidst predictions of substantial sales growth for its potential obesity and metabolic drugs.

Date: 25-11-2024

AI Rating: 6

The report highlights Ken Griffin's strategic investment in Viking Therapeutics, where he has tripled his stake. This move aligns with Wall Street's optimism regarding Viking's drug candidates. Noteworthy is B. Riley's buy rating with a price target of $109, suggesting a potential 105% increase from recent prices.

Viking Therapeutics is developing VK2735, a dual GLP-1/GIP receptor agonist which has already demonstrated promising results in clinical trials, specifically showing a placebo-adjusted weight loss of 13.1% in a short 13-week period. Comparatively, both Novo Nordisk's semaglutide and Eli Lilly's tirzepatide have proven successful, with notable sales figures reported during the first nine months of 2024, indicating a high demand for obesity treatments.

Moreover, Viking's involvement in combating metabolic dysfunction with its VK2809 drug further underlines its potential market impact. The report emphasizes that, despite high expectations and significant interest from major investors, the company has yet to initiate phase 3 trials. This means investors should exercise caution as it may take years before Viking starts generating any recurring revenue from its products.

Stocks: NASDAQ:VKTX NYSE:LLY NASDAQ:MDGL NYSE:NVO