Replies to post #249898 on Biotech Values

[DewDiligence]

Speculating like that is exactly what analysts should be doing, IMO.

[Mufaso]

VKTX recent analyst comments- Given the acquisition fervor surrounding any companies having an obesity drug candidate , I would say it is a conversation near term.

Here is what William Blair said earlier today

“Recent developments in the obesity space should buoy the attractiveness of Viking Therapeutics to big pharma, analysts at William Blair say. In a research note, Andy Hsieh and Alexandra Ramsey say Viking is in an enviable position with a highly competitive GLP-1/GIP dual agonist program in Phase 2 development, along with a potentially best- in-class thyroid hormone receptor beta-selective agonist in Phase 2b development. William Blair, noting Roche's $2.7 billion deal Monday to buy Carmot Therapeutics, along with other recent big obesity deals by Novo Nordisk, Eli Lilly and AstraZeneca, say Viking's programs and represent attractive bolt-on assets.”

Tipranks said Sunday:

A new sector review by Oppenheimer’s five-star analyst Jay Olson sees just such an opportunity in the market for obesity drugs. He notes that this field has multi-billion-dollar market potential, and writes, “We consider obesity the next wave for healthcare investors following on the heels of Immuno-Oncology (IO). Consensus sales for obesity drugs already approved and in development are expected to reach ~$67B. Meanwhile, obesity sales are expected to exceed IO in 2029 before reaching a similar peak in 2032…

Viking currently has three drug candidates in its research pipeline, spread across four separate study tracks. The company’s leading drug candidate, VK2809, shows promise as a potential treatment for several metabolically-linked conditions, including non-alcoholic steatohepatitis (NASH), type-2 diabetes, and obesity, all of which are interrelated. The company’s second-leading candidate, VK2735, directly targets metabolically-linked obesity.

...Jay Olson sees these two drug candidates as key drivers for Viking, especially VK2809 and its applications for NASH. He does not neglect the obesity-centered candidate VK2735, however, and writes, “We view VKTX’s lead candidate THR-ß agonist VK2809 for NASH as similar to Madrigal Pharmaceutical’s MGL-3196 with comparable Ph2a efficacy results of relative liver fat reduction that are at least as strong. We believe that if VK2809 Ph2b biopsy-confirmed NASH trial outcome is sufficient to continue into Ph3 development, then we see VKTX’s current market cap as undervalued compared to its peers. We believe that VK2735 offers asymmetric upside potential based on current valuation.”