Viking Therapeutics: Could GLP-1 Maker Be Acquired Pre-Approval?

Core Insights - The GLP-1 industry is dominated by Novo Nordisk and Eli Lilly, with compounded versions of their drugs losing market share as they are no longer on the FDA drug shortage list [1] - Viking Therapeutics' VK2735 has shown promising results in clinical trials, with a 14.7% weight loss after 13 weeks, making it a strong competitor to existing treatments [2] - Speculation around a potential acquisition of Viking Therapeutics has led to a significant increase in its stock price [4][5] Industry Overview - The GLP-1 market is currently an oligopoly, primarily controlled by two major pharmaceutical companies [1] - The market for GLP-1 treatments is valued at approximately $100 billion, attracting interest from larger pharmaceutical companies seeking to expand their portfolios [8] Company Developments - Viking Therapeutics is advancing its VK2735 product, with plans for Phase 3 trials for its subcutaneous injection expected in Q2 2025 and ongoing development of an oral version [3] - The stock price of Viking Therapeutics surged by 121$138 [2][6] - There is a precedent for acquisitions occurring before FDA approval, as seen with Roche's buyout of Carmot Therapeutics for $2.7 billion [7][6] Stock Performance - Viking Therapeutics' stock has shown volatility, with a recent surge attributed to acquisition rumors and strong clinical trial results [4][10] - The average analyst price target for Viking Therapeutics is$97.29, indicating a potential upside of 243.52% from current levels [6][11] - The stock is currently experiencing a breakout attempt from a descending triangle pattern, which is typically considered bearish [9][10]