Viking and Summit Therapeutics Stocks Soar on Bullish Projections

Shares of Viking Therapeutics and Summit Therapeutics have more than tripled this year, driven by optimism surrounding their weight loss and cancer treatment candidates. Analysts predict further stock price increases in the coming year, highlighting potential growth in the pharmaceuticals market.

Date: 07-10-2024

AI Rating: 7

Market Highlights

Both stocks of Viking Therapeutics and Summit Therapeutics are experiencing remarkable gains this year, with prices tripling in 2024. Viking's oral weight loss candidate and Summit's cancer therapy are significant catalysts for these increases.

Viking Therapeutics

Viking's weight management drug sales are part of a larger trend, as overall sales in this category have surged past $45 billion and are projected to hit $150 billion in the coming years. The experimental treatment VK2735 has shown weight reduction of about 15% in patients during phase 2 trials and is expected to begin phase 2 studies for its oral version soon.

Summit Therapeutics

Summit's promising PD-1 pathway cancer drug, ivonescimab, has displayed substantial efficacy in trials compared to Keytruda, which is currently the top-selling PD-1 drug with sales reaching $25 billion last year. Positive trial results have dramatically boosted Summit's stock, increasing by over 600% this year.

Investor Sentiment

Despite the bullish sentiment, both stocks carry some uncertainty. Viking's stock value is relatively modest given its potential, while Summit's high market capitalization suggests a possible overvaluation, raising caution before investing further.

Conclusion

The enthusiasm surrounding these pharmaceuticals could lead to further gains, assuming both companies navigate the clinical trial landscape successfully. Investors should approach with a balanced perspective considering potential risks against the promising forecasts.

Stocks: VKTX SMMT