Viking Therapeutics' Stock Faces Challenges Amid Optimism

Viking Therapeutics' stock has potential, but challenges loom. Analysts project a 200% increase, yet investor concerns grow due to leadership changes and competition. Can Viking navigate these hurdles and thrive in the market?

Date: 24-02-2025

AI Rating: 6

Eli Lilly and Novo Nordisk's Dominance: Over the past three years, both companies have significantly increased their stock prices, with Lilly soaring more than 270% and Novo Nordisk rising approximately 75%. This increase can be attributed to their success in the obesity drug market.

Viking Therapeutics' Current Position: Viking Therapeutics currently trades at around $32, with analysts projecting an average 12-month price target of $99.29, indicating a potential increase of over 200%. Despite this, Viking's stock has experienced a nearly 60% decline since late October 2024.

Analysts' Confidence: The report highlights a strong bullish sentiment among analysts, with a majority rating Viking as a “strong buy” or “buy.” This optimism is rooted in Viking's promising pipeline, particularly its lead candidate VK-2735 for obesity treatment, which is advancing into phase 3 clinical studies.

Market Risk Factors: However, the article points out concerns among investors regarding the future of weight-loss drugs, especially following political changes in the U.S. and the skepticism surrounding medication for weight loss expressed by appointees in the new administration. Additionally, Viking was seen as a potential acquisition target for Merck, which may have diminished after Merck's recent licensing deal for a competing obesity drug.

Pipeline Prospects: Viking's pipeline includes promising candidates VK-2735 and VK-2809, targeting obesity and severe liver disease, respectively. The potential for high returns exists if these drugs prove successful in clinical trials. However, the risks associated with investing in clinical-stage biotech stocks remain significant, particularly given Viking's current stock decline and market uncertainties.

Stocks: NASDAQ:VKTX