After pulling back on Novo Nordisk’s news of its own favorable obesity trials, Viking Therapeutics (VKTX) dropped about $17.
But that’s overkill.
It’s part of the reason analysts at Jefferies just initiated coverage of VKTX with a buy rating, with a price target of $110. According to the firm, VKTX is “enjoying scarcity value in the obesity space as demand for more mature/de-risked assets outstrips supply,” as quoted by CNBC.
‘We also have to consider that VKTX’s treatment is showing great progress in trials.
As reported by CNBC, “The trial followed more than 170 patients with obesity or who are overweight, some of whom received different dose sizes of the injectable drug or a placebo. Those who received weekly doses of the treatment lost up to 14.7% of their body weight from baseline, or 13.1% when adjusted for placebo, after 13 weeks.”
“Up to 88% of patients who received the drug, known as VK2735, achieved at least 10% weight loss, compared to just 4% of those who didn’t receive the treatment. Notably, there was no evidence of a plateau in weight reduction at week 13 for any dose of the drug, suggesting that ‘further weight loss might be achieved’ by keeping patients on the treatment longer, Viking CEO Brian Lian said during a call with investors.”