Jin Rong Jie·2025-08-20 00:41Core Viewpoint - Viking Therapeutics Inc. experienced its largest single-day stock drop, falling 42%, primarily due to disappointing mid-stage trial results of its experimental oral weight-loss drug, which led to significant short-seller profits [1][2]. Group 1: Stock Performance and Market Reaction - The stock price of Viking Therapeutics fell by 42%, resulting in a single-day profit of $521 million for short-sellers, reversing their earlier losses of approximately $140 million [1]. - The annual profit for short-sellers reached over $380 million following the stock's decline [1]. Group 2: Clinical Trial Results - The decline in stock price was attributed to adverse side effects from the weight-loss drug, with about 28% of patients dropping out of the trial within three months [1]. - High rates of nausea and vomiting were reported across all treatment groups, overshadowing efficacy data [1]. Group 3: Analyst Outlook - Despite the recent stock drop, nearly 90% of analysts covering Viking Therapeutics maintain a "buy" rating, with an average target price of around $90, indicating over three times potential upside [2]. - Oppenheimer & Co. analyst Jay Olson reiterated a "outperform" rating with a target price of $100, suggesting that the market's concerns regarding the drug's tolerability may be overestimated [2].