Viking Therapeutics Inc (VKTX)

[DMOST]

An outstanding bargain

George Budwell (Viking Therapeutics): Like most biotechs, shares of metabolic disease specialist Viking Therapeutics have been getting absolutely crushed this month. After reporting strong phase 2 data for its fatty liver disease drug candidate, VK2809, in September, the drugmaker's shares have lost a whopping 37% of their value from their recent highs. This rapid slide, though, should turn out to be a flat-out gift for patient investors.

Viking's dramatic turn southward, after all, isn't the result of a clinical, regulatory, or financial setback. In fact, the company now has two high-value clinical candidates -- VK2809 indicated for fatty liver disease and VK5211 as a treatment for complications associated with hip fracture recovery -- ready to enter the next stage of their development. Both of these promising drugs are projected to have blockbuster sales potential.

The bad news is that Viking may take longer than originally expected to become a full-fledged commercial operation. Specifically, the company's efforts to strike a licensing deal for VK5211 have yet to materialize, and VK2809 will likely require additional clinical work before it's ready to enter a late-stage study. Neither of these developmental hiccups is the end of the world by any means, but this moody market is clearly not interested in hearing about clinical delays.

Nevertheless, the payoff for investors willing to tolerate this short-term volatility could be truly outstanding. Both of Viking's lead midstage candidates have produced stellar data throughout the course of their clinical programs. As a result, this small-cap biotech seems to have a better-than-average shot at bringing two top-selling drugs to market within the next few years. Not many clinical-stage biotechs -- especially those trading at less than $20 a share -- can make a similar claim, quite frankly.
https://finance.yahoo.com/news/3-top-stocks-under-20-201800689.html

GO VKTX

"PEACE"