No one ever claimed that investing in the biotech industry was a smooth ride, but for shareholders of Viking Therapeutics(Nasdaq: VKTX)The turbulence has been extremely challenging so far. The share has fallen by 71% in the past year, in the midst of continuous uncertainties with regard to the timeline for future commercialization of its clinical pipeline and the wider sale of the stock market.
Nevertheless, the outlook of the company remains positive with his portfolio of therapeutic candidates who cover metabolic and endocrine diseases. The progress in the direction of the approval of the regulations with multiple data lectures that are expected later this year could be the catalyst for shares to return strongly.
So, do you now have to buy the dip in Viking Therapeutics? This is what you need to know.
Viking Therapeutics is a biotech clinical stage aimed at treatments for disorders such as obesity, type 2 diabetes and rare diseases. Although the company has not yet launched a product, the VK2735 candidate-a double agonist focused on glucagon-like peptide-1 (GLP-1) and glucose-dependent insulinotrope polypeptide (GIP) receptor-that-longe-making results in a 2-study phase.
Compared to existing GLP-1 drugs approved by the Food and Drug Administration (FDA) of Biotech giants such as Novo Nordisk And Eli LillyViking’s VK2735 could be a game changer in the field with various benefits identified from early data. They include:
The new Dual-Action approach for GLP-1 and GIP receptors can offer more extensive treatment for obesity and related conditions such as diabetes by using the complementary effects of both hormones.
VK2735 offers flexibility with both injectable and oral pill formulations that are being developed, aimed at various patient preferences.
Clinical data quickly show weight loss – up to 15% in 13 weeks – that Novo Nordisk’s Wegovy’s 15% weight loss line line for 68 weeks.
VK2735 shows favorable tolerability indicators, with usually mild side effects and no reports of serious problems such as gastroparesis, in contrast to other GLP-1 medicines.
A monthly dosing option for the injectable form of VK2735 is studied, which improves convenience for weekly injections that are needed by alternatives.
Viking’s chance is important. According to experts, it is estimated that the GLP-1 market becomes a total of $ 53 billion between both diabetes and obesity indications and is expected to be almost triple by 2030 to $ 139 billion. The potential that phase 3 studies are started in the current second quarter confirm that the best-in-class profile of VK2735 emphasizes the attraction of Viking as an investment.
The outlook of the company are further diversified with individual programs. Viking’s VK2809 candidate on disorders such as non-alcoholic steatohepatitis (NASH), while VK0214 focuses on X-linked adrenolukodystrophy (X-Ald), a rare disease that influences the nervous system. Other programs are also promising.
Image source: Getty images.
Viking projects confidence in the final FDA approval of VK2735 with the recent announcement of a multi -year production agreement with Cordenpharma. The deal protects the annual offer for a maximum of 100 million auto injectors, 100 million injectors and spray products, and a capacity to produce more than 1 billion oral tablets, which positions Viking for a large-scale commercial launch.
The good news is that the company benefits from a well -capitalized balance, ending at 2024 with $ 903 million in cash and zero debts. Management believes that it has the resources needed by completing phase 3 tests for VK2735 at Obesity.
However, there are significant uncertainties, including possible delays in timelines or regulatory obstacles, that represent risks for investors to consider. The company still has a lot of work to do before once launching its first product, which could be at the end of 2026 or in 2027, assuming that everything goes according to plan.
There are also persistent questions about the competitive landscape. Even with the expected clinical benefits of VK2735, the market has become busy with larger and more established players such as Novo Nordisk and Eli Lilly who will continue with the next generation GLP-1’s that would challenge the Blockbuster drug potential of Viking.
Viking therapeutics can be about to evolve from a clinical stage candidate in a disturbing force in the biotech industry. Recognizing the still speculative nature of the share, I am careful Bullish and predict that the stock price will act higher the following year, stronger from the weakness in the short term. For investors who are convinced that VK2735 will disrupt the GLP-1 market, a small position in the share for a diversified portfolio in the long term can bear fruit.
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Then Victor has no position in the aforementioned shares. The Motley Fool recommends Novo Nordisk and Viking Therapeutics. The Motley Fool has a disclosure policy.
With 71%, should you buy the dip on Viking Therapeutics shares? was originally published by the Motley Fool
