Tuesday, November 20, 2018 9:57:00 AM
[Benzinga]
Shanthi Rexaline
,Benzinga•November 20, 2018
Viking Therapeutics Inc (NASDAQ: VKTX), which focuses on therapies for metabolic and endocrine disorders, recently presented Phase 2 data for its non-alcoholic fatty liver disease, or NAFLD, treatment candidate VK2809 at the annual meeting of the American Association for the Study of Liver Diseases.
The Analyst
Raymond James analyst Steven Seedhouse upgraded Viking from Outperform to Strong Buy and reiterated a $43 price target.
The Thesis
Between Viking's lead asset VK2809 and Madrigal Pharmaceuticals Inc (NASDAQ: MDGL)'s MGL-3196 — both of which are thyroid hormone beta receptor agonists — VK2809 is more potent and tolerable, Seedhouse said in the Monday upgrade note, citing his conversations with investors and physicians. (See his track record here.)
This conviction has increased after the AASLD meeting, the analyst said.
Alanine aminotransferase, an enzyme found in liver and kidney cells that is indicative of liver damage, transiently increased from the baseline within the first week of the study and subsequently declined, Seedhouse said. By 16 weeks, the enzyme level was lower than the placebo and baseline, he said.
This allays concerns about the candidate's hepatotoxicity, Seedhouse said.
The aggregate MRI-PDFF-biopsy correlation data across non-alcoholic steatohepatitis, or NASH, studies increased confidence that VK2809's potency will translate into a greater biopsy benefit, the analyst said.
Seedhouse expressed comfort with the development timeline for VK2809, with Phase 2b biopsy study enrollment likely to be completed faster than expectations. If the company uses a nine-to-12-month biopsy endpoint, the Phase 2 data is likely to be available by the fourth quarter of 2020, he said.
"Finally, we think the M&A premium previously in Madrigal will shift to Viking, which is at a more attractive valuation to effectuate M&A if there is a mini-run on NASH assets in 2019."
Other Analyst Takes
In the aftermath of the AASLD presentation last week, Cantor Fitzgerald analyst Alethia Young said in a Nov. 13 note that VK2809 could follow the path paved by MGL-3196, but it may have to be tested in a Phase 2b study before advancing to pivotal stage development.
H.C. Wainwright analyst Joseph Pantginis said in a Nov. 8 note that the focus is now on an IND filing for NASH, with the company projecting a first half of 2019 timeline.
The Price Action
Viking Therapeutics shares were up 1.12 percent at $11.77 at the time of publication Monday.
Related Links:
The Week Ahead In Biotech: Earnings, Conferences, PDUFA Dates
A Health Care Pair Trade From Bank Of America: Sell Sabra Health, Hold Omega Health
Latest Ratings for VKTX
Date Firm Action From To
Nov 2018 Raymond James Upgrades Outperform Strong Buy
Sep 2018 Raymond James Maintains Outperform Outperform
Sep 2018 H.C. Wainwright Maintains Buy Buy
View More Analyst Ratings for VKTX
View the Latest Analyst Ratings
GO VKTX
"PEACE"
Recent VKTX News
- Viking Therapeutics Reports First Quarter 2024 Financial Results and Provides Corporate Update • PR Newswire (US) • 04/24/2024 08:05:00 PM
- U.S. Futures Display Mixed Results Amid Earnings, WTI and Brent Crude Prices Dip in June Futures Trading • IH Market News • 04/24/2024 11:31:20 AM
- Viking Therapeutics to Report Financial Results for First Quarter 2024 on April 24, 2024 • PR Newswire (US) • 04/17/2024 08:05:00 PM
- Viking Therapeutics Announces Results from Phase 1 Clinical Trial of Oral Tablet Formulation of Dual GLP-1/GIP Receptor Agonist VK2735 • PR Newswire (US) • 03/26/2024 11:03:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 12:54:02 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 12:52:22 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/04/2024 09:52:52 PM
- Viking Therapeutics Announces Closing of Public Offering of Common Stock Including Full Exercise of Underwriters' Option to Purchase Additional Shares • PR Newswire (US) • 03/04/2024 09:45:00 PM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 03/01/2024 09:13:40 PM
- Viking Therapeutics Announces Pricing of $550 Million Public Offering of Common Stock • PR Newswire (US) • 02/29/2024 01:50:00 AM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 02/27/2024 10:21:23 PM
- Viking Therapeutics Announces Proposed Public Offering of Common Stock • PR Newswire (US) • 02/27/2024 09:19:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/27/2024 12:04:52 PM
- Viking Therapeutics Announces Positive Top-Line Results from Phase 2 VENTURE Trial of Dual GLP-1/GIP Receptor Agonist VK2735 in Patients with Obesity • PR Newswire (US) • 02/27/2024 12:03:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/10/2024 01:59:57 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/09/2024 09:01:11 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/09/2024 12:40:13 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/09/2024 12:38:45 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/08/2024 09:56:27 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/08/2024 09:33:26 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 02/07/2024 10:33:13 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 02/07/2024 10:24:07 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/07/2024 09:09:21 PM
- Viking Therapeutics Reports Fourth Quarter and Year-End 2023 Financial Results and Provides Corporate Update • PR Newswire (US) • 02/07/2024 09:05:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/01/2024 01:39:53 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM
Moon Equity Holdings, Corp. Announces Acquisition of Wikolo, Inc. • MONI • May 7, 2024 9:48 AM