Invezz·2025-04-15 19:26Core Viewpoint - Investors are showing increased interest in Viking Therapeutics following Pfizer's termination of its weight-loss pill development due to drug-induced liver injury, leading to speculation about a potential acquisition by Pfizer to enhance its presence in the weight-loss market [1]. Group 1: Viking Therapeutics - Viking Therapeutics' stock has surged due to speculation surrounding Pfizer's potential acquisition, despite the company experiencing a nearly 50% decline in stock value this year, making it a more attractive target [2]. - Viking is currently developing both oral and injectable GLP-1 drugs, which are in Phase 2 trials, indicating ongoing clinical risks [1][6]. Group 2: Pfizer's Position - Pfizer has alternative assets in the weight-loss market, including two other candidates in clinical development, which may lead the company to focus on its own products rather than pursuing an acquisition of Viking [3][4]. - Financial constraints may hinder Pfizer's ability to acquire Viking, as the company has accumulated substantial debt from previous acquisitions and currently has an estimated M&A firepower of $10-$15 billion, making a large-scale buyout challenging [5][6]. - The failure of danuglipron has delayed Pfizer's entry into the competitive weight-loss market, but the company still has other candidates that could be more viable options [3][4]. Group 3: Market Outlook - Despite setbacks, Wall Street maintains a positive outlook on Pfizer, with a consensus rating of "overweight" and an average price target of $29.41, suggesting a potential upside of about 35% from current levels [7]. - Pfizer's stock offers a high dividend yield of 7.78%, appealing to investors seeking passive income amid recession risks [8].