On Thursday, Truist Securities maintained a Buy rating on Viking Therapeutics (NASDAQ:VKTX) with a steady price target of $120.00. The firm's analysis followed the release of new clinical trial data from competitor Roche, which revealed their drug CT-388 achieved a mean placebo-adjusted weight loss of 18.8% over a period of 24 weeks. Truist Securities compared this data with Viking's VK2735, currently in Phase 2 VENTURE trials, suggesting that VK2735 demonstrated superior efficacy.
The comparison between the two drugs, according to Truist Securities, indicates that VK2735's weight loss trajectory is steeper and could surpass CT-388's results at later time points. The firm acknowledged the limitations inherent in cross-trial comparisons but still posited that VK2735 has the potential to outperform the current market leader, tirzepatide by Eli Lilly (NYSE:LLY).
Adverse events (AEs) reported for CT-388 were noted to be in line with the incretin class of medicines. Truist Securities highlighted that, based on initial impressions, VK2735's tolerability profile appeared to be more favorable. Details on the dosing and titration regimen for CT-388 were not disclosed, and the firm expressed anticipation for further data releases expected in the upcoming weeks or possibly at medical conferences in June or September.
Truist Securities concluded its commentary by reiterating their confidence in VK2735, suggesting it could be the best-in-class drug. They also pointed out the potential benefits of VK2735's long half-life, which could allow for less frequent dosing—possibly once a month in Phase 2b trials—which may offer convenience and cost advantages.
InvestingPro Insights
With Truist Securities maintaining a bullish stance on Viking Therapeutics, investors are keen to understand the financial metrics that underpin VKTX's market position. According to InvestingPro data, Viking Therapeutics holds a market capitalization of $7.78 billion USD. Despite a challenging earnings landscape, as indicated by a negative P/E ratio of -79.09, the company's stock has seen a remarkable 6-month price total return of 640.84%, highlighting significant investor optimism. Additionally, the 3-month price total return stands at an impressive 115.5%, showcasing a robust short-term performance.
Turning to the InvestingPro Tips, it's noteworthy that Viking Therapeutics holds more cash than debt on its balance sheet, which could provide financial flexibility in advancing its clinical programs. However, analysts have tempered their earnings expectations for the upcoming period, with three analysts revising their earnings downwards. This suggests that while the market has high hopes for VKTX's drug pipeline, there are cautionary signals regarding near-term profitability. For those considering diving deeper into Viking Therapeutics' potential, InvestingPro provides an array of additional tips, with 16 more insights available to guide investment decisions. To access these insights and enhance your investment strategy, use coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.