Core 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].

Group 1 - Viking Therapeutics Inc. experienced a significant stock price drop of 42%, resulting in a one-day gain of $521 million for short sellers, reversing earlier losses for the year [1] - The decline was attributed to adverse mid-stage trial results of an experimental oral weight loss drug, with approximately 28% of patients dropping out due to side effects, undermining market expectations of competition with popular injectable weight loss products from Eli Lilly and Novo Nordisk [1] - Piper Sandler analyst Biren Amin noted that "tolerability issues overshadowed efficacy data," highlighting high rates of nausea and vomiting across all treatment groups in the study [1] Group 2 - Despite the stock price drop, 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 [2] - Oppenheimer & Co. analyst Jay Olson described the stock's weakness as a buying opportunity, suggesting that market concerns regarding tolerability issues are exaggerated, while reiterating a "outperform" rating and a target price of $100 [2]

Core 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]