LLY - Viking Therapeutics gains as Street defends after selloff

2023-06-29 10:48:14 ET

Viking Therapeutics ( NASDAQ: VKTX ) traded higher for the second straight session on Thursday after analysts defended the biotech following a selloff triggered by strong data from Eli Lilly’s ( LLY ) experimental drug retatrutide for non-alcoholic fatty liver disease (NAFLD).

Retatrutide, which belongs to a drug class known as incretins, normalized liver fat in patients with NAFLD in a small Phase 2 trial, LLY said early this week, sparking a selloff in liver disease drug developers.

Citing a potential misinterpretation of data, William Blair says the firm would be buyers on VKTX following what it called a disproportionate and unfounded selloff.

Meanwhile, Truist attributed the selloff to strong data for incretins and last week's FDA rejection of the liver disease therapy obeticholic acid developed by Intercept Pharmaceuticals ( ICPT ) for nonalcoholic steatohepatitis (NASH).

While the VKTX was on course to close at a three-month low on Monday, Truist’s Joon Lee noted that the weakness in Viking ( VKTX ) shares offered an opportunity for bullish investors to add.

Meanwhile, Canaccord Genuity upgraded Intercept Pharmaceuticals ( ICPT ) to Buy from Hold, raising its price target to $18 from $12 per share on Thursday after the company halted its NASH program following the FDA rejection.

More on Viking

• Viking Therapeutics a buy at Roth on NASH candidate and pipeline
• Viking Therapeutics: Latest NASH Data Reinforces Drive Towards Finish Line

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