ZACKSยท2025-09-16 18:01Core Insights - Amgen and Viking Therapeutics are positioned in the obesity drug market, with Amgen focusing on its lead candidate MariTide and Viking on VK2735, both showing significant potential [1][2] Amgen Overview - Amgen has a diverse portfolio across oncology, cardiovascular disease, inflammation, bone health, and rare diseases, with key products driving sales [3] - The acquisition of Horizon Therapeutics in 2023 has expanded Amgen's rare disease offerings, adding drugs like Tepezza and Krystexxa [4] - MariTide, Amgen's key pipeline candidate, is in late-stage development, with two phase III studies initiated for obesity treatment [5] - MariTide is being tested for monthly dosing, showing up to 20% average weight loss over 52 weeks in non-diabetic patients, though results were at the lower end of expectations [6] - Amgen's pipeline includes other promising drugs for various conditions, indicating significant commercial potential [7] - The company has a strong biosimilars portfolio, with ongoing development of biosimilars for major oncology drugs [8] - Sales of some best-selling drugs are expected to decline due to patent erosion, impacting future revenue [9] Viking Therapeutics Overview - Viking Therapeutics is a clinical-stage biotech with VK2735 showing potential for significant weight reduction in obesity treatment [10] - VK2735 demonstrated a 12.2% weight loss in a study, but faced high dropout rates of 28% due to adverse events [12][13] - The company plans to expand its obesity pipeline with a new drug application for a dual amylin and calcitonin receptor agonist [14] - Viking is also exploring candidates for other conditions, but faces challenges due to lack of marketed products and competition from larger firms [15] Financial Estimates - Amgen's 2025 sales and EPS estimates indicate a year-over-year increase of 6.7% and 6.4%, respectively, with upward trends in EPS estimates [16] - Viking's projected loss per share for 2025 is expected to widen by nearly 146%, with loss estimates increasing over the past 60 days [17] Stock Performance and Valuation - Year-to-date, Amgen's shares have gained over 5%, while Viking's shares have decreased by 40% [19] - Amgen's shares trade at a price/book ratio of 19.86, significantly higher than Viking's 3.41, indicating a more expensive valuation [20] Investment Considerations - Amgen is viewed as a financially robust, dividend-paying stock with strong revenue and profit growth potential [24] - Viking faces challenges due to its lack of marketed drugs and reliance on pipeline success, making Amgen a safer investment choice despite its higher valuation [25] - Amgen holds a Zacks Rank 3 (Hold), while Viking has a Zacks Rank 4 (Sell), reinforcing Amgen's favorable investment position [26]