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.
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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
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Recent VKTX News
- Viking Therapeutics to Participate at Morgan Stanley 22nd Annual Global Healthcare Conference • PR Newswire (US) • 08/28/2024 08:03:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/22/2024 11:23:58 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 08/21/2024 08:30:12 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/20/2024 12:13:31 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 08/20/2024 12:00:06 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/31/2024 08:05:07 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/31/2024 08:05:07 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/30/2024 09:56:42 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/30/2024 09:55:09 PM
- Earnings Updates: Ford Shares Fall 13% on EPS Miss, Stellantis Down 6%, Viking Therapeutics Up 20%, Unilever Up 5% • IH Market News • 07/25/2024 10:19:48 AM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 07/24/2024 09:00:23 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/24/2024 08:10:08 PM
- Viking Therapeutics Reports Second Quarter 2024 Financial Results and Provides Corporate Update • PR Newswire (US) • 07/24/2024 08:05:00 PM
- US Index Futures Fall Amid Tech Giant Earnings, Oil Prices Rise • IH Market News • 07/24/2024 09:55:54 AM
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- Form 8-K - Current report • Edgar (US Regulatory) • 06/04/2024 11:10:11 AM
- Viking Therapeutics Announces Positive 52-Week Histologic Data from Phase 2b VOYAGE Study of VK2809 in Patients with Biopsy-Confirmed Non-Alcoholic Steatohepatitis (NASH) • PR Newswire (US) • 06/04/2024 11:05:00 AM
- Viking Therapeutics to Participate at Upcoming Investor Conferences • PR Newswire (US) • 05/30/2024 08:03:00 PM
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- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 05/22/2024 08:33:26 PM
- Viking Therapeutics Reports First Quarter 2024 Financial Results and Provides Corporate Update • PR Newswire (US) • 04/24/2024 08:05:00 PM
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- 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
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