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 ...

Oral Late Breaker Presentation Summarizes Positive Results Including Successful Achievement of Study's Primary and Secondary EndpointsData Support VK2809's Best-in-Class Profile Highlighted by Robust Liver Fat Reductions, Histologic Results Demonstrating NASH/MASH Resolution and Fibrosis Improvement, and Promising Tolerability and SafetySAN DIEGO, Nov. 19, 2024 /PRNewswire/ -- Viking Therapeutics, Inc. ("Viking") (NASDAQ: VKTX), a clinical-stage biopharmaceutical company focused on the development of novel ...

Core Viewpoint - Viking Therapeutics is positioned as an exciting biotech company with significant potential for growth, primarily driven by its clinical-stage candidate for weight loss, VK2735, which could lead to substantial share price increases in the coming years [1][2]. Group 1: Major Catalysts - Viking Therapeutics has at least two major catalysts on the horizon, primarily related to clinical trial data readouts that could impact the company's profitability outlook [3]. - The clinical trials for VK2735, aimed at treating obesity, include an injectable formulation expected to enter phase 3 trials in late 2024 or early 2025, and a pill formulation set to begin phase 2 trials in Q4 2023, with potential weight loss of up to 8.2% within 28 days [4][5]. - Interim data updates for both formulations are anticipated in 2025, which could result in a total of four catalysts if preliminary data is released [5]. Group 2: Financial Position - Viking Therapeutics has a strong financial position, with $930 million in cash, equivalents, and short-term investments as of Q3, and operating expenses totaling $100.8 million for 2023, providing ample resources for upcoming clinical trials and manufacturing preparations [7][8]. - The company has less than $1 million in noncurrent liabilities, allowing for significant borrowing capacity if needed, and the current inflated share price would minimize the impact of issuing new equity for capital [9][10]. Group 3: Additional Pipeline Programs - In addition to its obesity treatments, Viking Therapeutics is developing therapies for metabolic dysfunction-associated steatohepatitis (MASH) and X-linked adrenoleukodystrophy (X-ALD), with the former recently completing phase 2b trials and data expected to be reported on November 19 [11][13]. - The X-ALD program is in earlier stages, having just finished phase 1b trials, with management evaluating safety data to determine the next steps [12].

Equity markets have performed well in 2024, but their showing pales next to that of Viking Therapeutics (VKTX -7.45%), a mid-cap biotech that rose in prominence this year. The drugmaker's shares are up by nearly 200% since January.However, while many investors are excited about Viking's prospects, others worry they have already missed the boat. How much upside does a clinical-stage biotech with a market cap of $6.3 billion have? Is it too late to invest in Viking Therapeutics, or do the company's shares rem ...

Mergers and acquisitions could make a comeback with Trump headed back to Washington.The 2024 presidential election and President-elect Donald Trump is headed back to Washington. The Republican party also won control of the Senate and the House of Representatives.If Trump's previous tenure in the Oval Office is an indicator for what can be expected, there's a good chance for a less stringent regulatory environment.One of my big predictions under a Trump presidency is that mergers and acquisitions (M&A) will ...