Viking Therapeutics Inc (VKTX)

[tootalljones]

I take quiet confidence in this comment by Madrigal:

"The company is working with investment bank Centerview Partners Holdings on the potential sale, the people said, declining to be identified as the matter is private. The deliberations are at an early stage and Madrigal may opt to continue operations on its own, they said. Representatives for Madrigal declined to comment, while Centerview didn't immediately respond to calls."
https://seekingalpha.com/article/4181588-rounds-report-potential-m-madrigal-fda-incorporate-patients-voice-drug-innovation

So let me get this right: Madrigal felt assured enough to permit this disclosure of evidence, that there were sale deliberations going on at this level. The question is this, how much upside is there to their compound? Let us say, since nobody pays fair market value to buy a drug that Madrigal is developing. Let us hypothesize, the their prospective suitor things Madrigal is worth 2.5X the current market cap, or roughly 10 billion dollars. (current cap is 4.1 billion, excluding cash)....

Now, X cash, Viking's sole compound in NASH/Cardio, is valued at approximately 1/16th......Again, if Madrigal is not blowing smoke up the market's ass, which I doubt as they would not falsify the existence of a suitor in early deliberations, the valuation gap for Viking is massive. Sure this is painting just on the back of a napkin, with wild estimates but still....indeed, the estimates might be conservative,

but one thing is clear, we have what appears to be the more effective drug.
and this biotech sector is a baby.....
a triple by year end from the current price is called for.