NVO - Viking Therapeutics: Great Clinical Results Do Not Guarantee Commercialization Success

2024-07-20 09:20:25 ET

Summary

• VKTX's obesity therapy candidate, VK2735, demonstrates accelerated weight loss results compared to Wegovy/ Mounjaro and the next-gen candidates, including CagriSema/ Zepbound/ Retatrutide.
• This explains why the stock is trading at a notable premium compared to its historical means and biotech sector, offering interested investors with a minimal margin of safety.
• VKTX remains a pre-revenue biotech company with uncertain means to bring the product to mass-market global commercialization upon the supposed US FDA/ the EU EC approval.
• This is barring dilutive capital raises and/ or massive debt reliance and/ or strategic partnership with large pharmaceutical companies/ contract manufacturers.
• VKTX insiders have also been unlocking great gains at current levels, worsened by the elevated short interest and the stock's current support retest.

VKTX's Investment Thesis Is Promising, Made Possible By The GLP-1 Hype

We previously covered Novo Nordisk ( NVO ) and Eli Lilly and Company ( LLY ) discussing their prospects and pipelines attributed to the market exuberance surrounding GLP-1 therapies. ...

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