Biotech Values

[Mufaso]

VKTX2809 results were better than expected all the way around. The fat reduction were on par with the prior 2a study which is amazing considering the more difficult to treat population. Efficacy for fat reduction was better than resmetirom (e.g. percentage of subjects achieving >30% reduction in Madrigal P2 was 60.3% for all arms and 75% in the highest dose while VK2809 was 77% at 2.5mg QD, 67% at 5 mg QOD and 85% at 10 mg QOD). This drug has best in class efficacy and safety potential

Tough to say where VKTX will end up today but I don't think the shorts which have shorted a very large 12% of stock outstanding will be smiling much. The response could be muted though as the question of fibrosis and long term efficacy has yet to be answered/ biopsy confirmed. (Given that the MOA is the same as resmisitron, I think that it is a safe bet that VK2809 will impress) Once everyone digest these results I expect price target increases by analysts.

I did listen to the conference call and had the following initial reactions/opinions:

-analysts unusually effusive in praise of drug
-CEO Brian Lian was his usual reserved self and simply stated in matter of fact manner how safe this drug is proving and how effective it appears to be at this point.
-tamped down expectations for a capital raise saying they had sufficient capital to go full speed ahead on both VK2809 and VK2735.
-really liked Brian's response to question on headcount saying- "yes- have extraordinarily lean organization but they have been very effective /productive - will add headcount in areas that deal with clinical and regulatory affairs."

All in all, the outlook on this stock has gotten considerably better and this stock is now less risky..