MDGL - 89bio and Viking Therapeutics become BTIG's top picks in NASH space

BTIG has resumed coverage of 89bio (ETNB -0.1%) and Viking Therapeutics (VKTX +4.0%) categorizing the clinical-stage biotech companies as its top picks among the developers in the field of nonalcoholic steatohepatitis (NASH). The analyst Justin Zelin thinks that the lead candidates from the two companies have demonstrated “anti-fibrotic and anti-steatotic” effects in NASH, a disease characterized by fat accumulation and fibrosis in the liver. The price targets for 89bio and Viking at $60 and $20 indicate a premiums of ~302.4% and ~241.3% to their last close, respectively. 89bio and Viking are trading at “heavy discounts” to Akero Therapeutics (NASDAQ:AKRO) and Madrigal Pharmaceuticals (NASDAQ:MDGL), respectively, which according to the analyst, are their “immediate mechanistic competitors.” As the graph shows, all four biotechs have underperformed the broader market over the past six months. But Seeking Alpha contributor Biologics with a bullish rating on Viking thinks that the company has the potential to generate

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89bio and Viking Therapeutics become BTIG’s top picks in NASH space