Viking Therapeutics(US:VKTX) Zhi Tong Cai Jing·2025-08-19 23:21Core Viewpoint - Viking Therapeutics Inc. experienced a significant stock price drop of 42%, leading to substantial gains for short sellers and reversing earlier losses for the year [1][4] Group 1: Stock Performance - The stock price decline resulted in a paper profit of $521 million for short sellers on that day, bringing their year-to-date profits to over $380 million, compared to a loss of approximately $140 million as of the previous close [1] - This drop marked the largest single-day decline in the company's history [1] Group 2: Clinical Trial Results - The stock price plunge was attributed to disappointing mid-stage trial results for an experimental oral weight-loss drug, which saw about 28% of participants drop out due to side effects [4] - The adverse effects overshadowed efficacy data, with high rates of nausea and vomiting reported across all treatment groups [4] - This incident follows another recent oral weight-loss drug trial from Eli Lilly that also failed to meet Wall Street expectations, resulting in a 14% stock drop, the largest since 2000 [4] Group 3: Analyst Ratings - Despite the negative news, nearly 90% of analysts maintain a "buy" rating for Viking Therapeutics, with an average target price of around $90, indicating over three times potential upside from current trading levels [4] - Oppenheimer & Co. analyst Jay Olson views the stock's decline as a buying opportunity, suggesting that market concerns regarding tolerability issues are overstated, while reiterating a "outperform" rating and a $100 target price [4]