2024-12-10 04:10:00 ET
One particular healthcare stock has shown its ability to soar on good news -- and it's had plenty of it. This year the company reported solid results from trials of a candidate meant to address one of today's hottest growth areas: weight loss. The weight loss drug market may reach $130 billion by 2030, according to Goldman Sachs Research, an increase from its earlier estimate of $100 billion.
Viking Therapeutics (NASDAQ: VKTX) saw its shares rise 121% in one trading session after its initial clinical trial report back in February. The stock has since pulled back from that high point, yet it continued to advance, heading for an annual increase of about 170%. Investors are optimistic about Viking's ability to carve out share in the weight loss drug market, which is now dominated by pharma giants Eli Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO) .
This up-and-coming biotech player may be on the right path, but still, investors should proceed with caution. That's because this skyrocketing stock comes with a hidden risk. Let's find out more.
