This is a high-risk, high-reward stock.In this video, I will cover the recent updates regarding Viking Therapeutics (VKTX 0.56%). Watch the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were from the trading day of Jan. 3, 2025. The video was published on Jan. 4, 2025. ...

Market Dynamics - Viking Therapeutics' share price declined by 24% in December 2024 due to intensified competition in the pharmaceutical market [1] - Merck entered into a licensing deal with Hansoh Pharma for an investigational weight-loss drug HS-10535, posing a threat to Viking's VK2735 program [3] - The weight-loss drug market is highly lucrative with only two GLP-1 drugs approved in the US, indicating significant growth potential [6] Competitive Landscape - Merck secured exclusive global licensing rights to HS-10535, committing $112 million upfront and up to $1.9 billion in milestone payments and royalties [5] - Viking's VK2735, an oral obesity drug, is relatively advanced in development and has shown promising results in clinical trials [3][8] - VK2735 has a competitive advantage over injectable treatments like Novo Nordisk's Wegovy and Eli Lilly's Zepbound [4] Development Progress - HS-10535 is still in development and its efficacy remains uncertain, while VK2735 is closer to commercialization [7][8] - Viking's VK2735 is positioned as a potential go-to treatment due to its oral administration format [8]

It's been an excellent year for Viking Therapeutics (VKTX 2.19%), a mid-cap biotech company. Thanks to impressive mid-stage clinical results, its stock skyrocketed in February. And although it's down from the all-time highs it hit earlier this year, it remains one of the better performers in the industry over the past 12 months.However, Viking's shares recently dropped massively -- by more than 10% -- in one day. And the stock is down 24% in the past month. What exactly caused this recent decline? Should in ...

Core Insights - Viking Therapeutics has $930.4 million in cash and equivalents, providing a buffer against current spending rates, while Merck's established revenue from commercialized medicines allows it to endure clinical setbacks longer if necessary [1] - Viking's VK2735 oral candidate may have a competitive edge in the market for about a year before facing Merck's product, with clinical data suggesting VK2735 could be more effective for weight loss compared to competitors from Eli Lilly and Novo Nordisk [2][4] - The market for anti-obesity drugs is still growing and not saturated, making competition less intimidating for Viking [2] Company Developments - Viking's VK2735 is being developed in both injectable and oral formats, with the injectable version advancing to phase 3 trials after successful phase 2 results, while the oral version is in planning for phase 2 [6][7] - Viking's stock fell 18% following Merck's announcement of a licensing deal for a competing weight-loss drug, HS-10535, which includes an upfront payment of $112 million and potential milestone payments of up to $1.9 billion [9][15] - Despite the stock drop, Viking is not in immediate trouble, as the market's reaction is based on assumptions about the outcomes of its upcoming clinical trials [14] Market Context - The anti-obesity drug market is becoming increasingly competitive, with Merck's entry posing a challenge to smaller companies like Viking that have yet to establish a self-sustaining revenue model [16] - If VK2735 is successful, it could generate over $1 billion in sales within its first year, significantly benefiting shareholders [13] - The competitive landscape suggests that while Viking faces a formidable opponent in Merck, it still has opportunities to succeed if it can capitalize on its clinical trial results [18]

News of a fresh licensing deal by a well-capitalized rival sent Viking Therapeutics (VKTX 1.83%) stock into something of a tailspin this week. According to data compiled by S&P Global Market Intelligence, the biotech's share price fell by just over 10% over the period as a result.Merck makes a moveThat news hit the headlines on Wednesday, with global pharmaceutical company Merck announcing that it had entered into an exclusive worldwide licensing arrangement for a GLP-1 obesity drug currently in development ...

Company Overview - Viking Therapeutics (VKTX) shares fell 18% following Merck's announcement of entering the obesity market through a licensing deal with Hansoh Pharma for a weight-loss drug [1][5] - Merck secured exclusive rights to develop and market HS-10535, a preclinical oral small-molecule GLP-1 receptor agonist targeting metabolic disorders, including obesity, with an upfront payment of $112 million and potential milestone payments of up to $1.9 billion [2][6] Competitive Landscape - Merck's entry into the obesity space is perceived as a significant competitive threat to smaller biotech firms like Viking, which has been developing VK2735, a dual GLP-1 and GIP receptor agonist for obesity treatment [4][5] - The likelihood of Merck acquiring smaller companies like Viking has decreased, diminishing Viking's speculative value as a takeover target [6] Market Dynamics - The obesity market is projected to reach $100 billion in the United States by 2030, with major players like Eli Lilly and Novo Nordisk leading the market with their drugs Zepbound and Wegovy [12] - Other companies, including Amgen and Roche, are also making strides in the obesity drug development space, with Amgen reporting significant weight loss results from its GLP-1 therapy MariTide [13][14] Development Pipeline - VK2735 has shown promising results in clinical studies, with patients losing up to 8.2% of body weight after 28 days of treatment [9] - Viking plans to meet with the FDA before the end of 2024 to discuss late-stage study designs for VK2735 and intends to file an IND application for a new obesity drug candidate next year [10][11]

Core Viewpoint - Viking Therapeutics Inc. is approaching a critical technical moment as its stock hovers near a potential death cross, indicating bearish signals and growing pressure on the stock despite previous rallies [1][2]. Stock Performance - VKTX stock experienced a significant decline, dropping 25.69% over the past month and 14.57% over the last six months, currently trading at $54.51, which is below its 20-day and 50-day simple moving averages of $58.72 and $63.04 respectively [2]. - The 200-day simple moving average is at $62.73, indicating a narrow gap that brings the death cross closer [3]. Technical Indicators - The Moving Average Convergence Divergence (MACD) indicator is at a negative 3.68, and the Relative Strength Index (RSI) is at 42.11, suggesting a loss of bullish momentum in the market [3]. Competitive Landscape - Analysts express concerns regarding Viking's ability to compete in the lucrative obesity drug market, which is dominated by major players like Eli Lilly and Novo Nordisk. The production scaling for both oral and injectable versions of Viking's weight-loss drug candidates may be costly and time-consuming, impacting short-term prospects [4]. Outlook - The impending death cross reflects broader challenges for Viking, as investor confidence diminishes amid sector-wide issues. However, there is potential for the stock to recover if Viking announces favorable clinical updates or strategic advancements in its weight-loss pipeline [5].

It has been about a month since the last earnings report for Viking Therapeutics, Inc. (VKTX) . Shares have lost about 29.5% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Viking Therapeutics due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Narrower-Than-Expecte ...

Core Viewpoint - Viking Therapeutics (VKTX) has experienced a significant decline in stock value, losing nearly 17% in the past month, which equates to approximately $1.2 billion in market capitalization, underperforming compared to the industry and the S&P 500 [1][2] Company Performance - VKTX's shares are currently trading below the 50 and 200-day moving averages, indicating a bearish trend [1] - The company has shown promising progress in its obesity drug program, particularly with VK2735, which has demonstrated superior weight reduction capabilities in clinical studies [4][8] Competitive Landscape - The rising competition in the obesity drug market, particularly from AstraZeneca's recent positive results for its oral drug, has contributed to VKTX's stock decline [4] - Major players like Eli Lilly and Novo Nordisk dominate the obesity market, with the U.S. obesity market projected to reach $130 billion by 2030 [11] Pipeline Developments - VKTX is developing VK2735 as both a subcutaneous injection and an oral pill, with plans to meet the FDA for late-stage study design discussions by the end of 2024 [9][10] - The company is also advancing other pipeline drugs, including VK2809 for non-alcoholic steatohepatitis (NASH) and VK0214 for X-linked adrenoleukodystrophy (X-ALD), both showing promising clinical results [12][13][15] Financial Position - VKTX is trading at a premium to the industry with a price/book ratio of 6.31 compared to the industry average of 3.49 [17] - The company's loss per share estimates for 2024 have improved slightly from $1.00 to $0.98, indicating a more favorable outlook [19] - VKTX has a strong cash position of approximately $930 million and zero debt, allowing it to fund operations and pipeline programs without immediate financial distress [21] Market Opportunities - Despite the competitive landscape, the increasing demand for obesity drugs presents opportunities for smaller biotech firms like VKTX to capture market share [22] - Analysts maintain a positive outlook for VKTX, suggesting that the stock has growth potential and recommending investors to hold their positions [23]

On Tuesday, Viking Therapeutics, Inc. VKTX highlighted the final results from its VOYAGE Phase 2b trial of VK2809 in patients with biopsy-confirmed non-alcoholic steatohepatitis (NASH, also referred to as metabolic dysfunction-associated steatohepatitis, MASH) at the American Association for the Study of Liver Disease.Reduction in Liver Fat Content at 52 Weeks: Patients receiving VK2809 demonstrated statistically significant reductions in liver fat at Week 12, the primary endpoint.Patients receiving VK2809 ...