Viking Therapeutics Stock Pops But Struggles to Hold Gains

Core Viewpoint - Viking Therapeutics has experienced significant stock volatility in 2024, with a peak increase of 375% from its January 2 closing price, but has since declined and is now within 10% of that price as of April 15, 2025 [1] Group 1: Stock Performance and Market Reactions - Viking stock surged approximately 12% recently due to the announcement of a phase 3 study for its GLP-1 weight loss drug candidate, VK2735, but struggles to maintain these gains due to concerns over the practical costs of such drugs [2][3] - The stock has a current price of $22.98, with a 12-month price target of$89.75, indicating a potential upside of 290.39% based on analyst ratings [10] - Short interest in VKTX stock exceeds 20%, suggesting that the stock may still be under pressure and has not yet found a bottom [12] Group 2: Product Development and Market Potential - VK2735, a GLP-1 drug, is being developed in both injectable and oral forms, with the oral version potentially addressing patient concerns about needles and possibly having fewer side effects, although it may take longer to show weight loss results [4][5] - The GLP-1 drug market has seen significant growth, but the lack of coverage by Medicare and Medicaid for weight loss applications poses a challenge for broader adoption [6][8] Group 3: Regulatory Environment and Future Outlook - The Biden administration's proposed rule to allow Medicare and Medicaid coverage for GLP-1 drugs was not finalized, which could limit access for over 7 million patients [7][8] - The regulatory framework for GLP-1 drugs remains uncertain, with estimates suggesting that adding such coverage could dramatically increase healthcare costs, potentially doubling employer healthcare expenses [9][11] - Investors may need to hold VKTX stock for several years before VK2735 receives approval, facing potential competition and regulatory challenges that could impact future stock performance [11]