Tuesday, February 12, 2019 3:34:14 PM
What happened
Shares of Viking Therapeutics (NASDAQ: VKTX) jumped nearly 14% today after Gilead Sciences (NASDAQ: GILD) announced that a closely watched drug candidate failed a phase 3 trial. The drug candidate, selonsertib, was being developed as a potential treatment for nonalcoholic steatohepatitis (NASH).
The disease is characterized by inflammation and scarring of the liver stemming from fat buildup. The relatively poorly-served patient population has led to over one dozen experimental drugs chasing the market's blockbuster potential. That includes Viking Therapeutics, which no longer has to worry about Gilead Sciences beating it to the punch.
As of 1:51 p.m. EST on Tuesday, Viking's stock had settled to a 10.8% gain.
Gilead Sciences decided to continue developing selonsertib for NASH even after a questionable phase 2 trial failed to show if the drug candidate was actually effective. The highly competitive industry pipeline likely tipped management to make its hasty decision, not to mention mounting pressure following the company's 2016 failure of simtuzumab in clinical trials for the liver disease.
The failure removes Gilead Sciences from contention, which has analysts eyeing the other drug candidates in the field. Viking Therapeutics is developing VK2809, which relies on a different mechanism of action than selonsertib and other drugs.
It delivered impressive results in a phase 2 trial for treating nonalcoholic fatty liver disease (NAFLD), a less-severe form of NASH. After 12 weeks of treatment, fully 67% of patients taking the drug candidate achieved at least a 50% reduction in liver fat. Roughly 83% of patients realized a reduction of at least 30%. Only 18% of patients receiving a placebo saw reductions of either magnitude.
The company thinks that reducing liver fat by at least 30% will be the clinical threshold for treating NASH, so the results in NAFLD suggest the company has a promising treatment in development.
Now what
Viking Therapeutics expects to initiate a trial for VK2809 in NASH sometime this year. Given the impressive results from the midstage trial in NAFLD and the recent failure of Gilead Sciences, the $630 million company is no doubt one of the most promising NASH stocks to watch in 2019. While there are still other deep-pocketed companies developing drug candidates for the liver disease, this small-cap pharma might offer the most reward -- and a healthy amount of risk, too.
https://finance.yahoo.com/news/apos-why-viking-therapeutics-rose-195700888.html
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
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- 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
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