LGND - Viking Therapeutics: Future Weight Loss Heavyweight?

2024-04-02 06:01:11 ET

Summary

• Viking Therapeutics' share price has rapidly increased from recent weight loss drug excitement.
• The company’s value seems to be derived from its weight loss and NASH/MASH candidates.
• VK2735, the weight loss candidate, presents a potentially massively large opportunity, despite the crowded market.
• VK2809, the NASH/MASH candidate, now offers an attractive opportunity as a recently launched drug provides proof-of-concept for the space.

Introduction

Viking Therapeutics ( VKTX ) is a biotech focusing on bringing metabolic treatments to market. They seem to be largely focused in areas of broad interest, such as obesity (with their GLP-1/GIP agonist), and NASH (nonalcoholic steatohepatitis, with a TR-Beta agonist). Both have had some recent excitement, for example, Eli Lilly's ( LLY ) and Novo Nordisk's ( NVO ) successes with the ever-expanding obesity market (which may surpass a hefty ~$77B within the next decade). Madrigal Pharmaceuticals’ ( MDGL ) recent launch of Rezdiffra has also potentially opened up the NASH market, which may exceed ~$48B by 2035. These opportunities combined with some of VKTX's recent clinical success, can help explain the stock's rapid increase within the past month....

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