Viking Therapeutics (NASDAQ: VKTX) is a scorching biotech inventory due to the corporate’s document of reporting good information from its cardiometabolic illness applications, and there is not any signal of that status being tarnished.
In truth, Viking simply gave traders an replace which companies up its standing as a really promising firm. This is what it reported, and why it is another excuse to purchase the inventory.
Its newest information means that this market is nearly inside attain
At The Liver Assembly annual convention on Nov. 19, Viking reported some section 2b scientific outcomes from one in all its applications, VK2809, which goals to deal with metabolic dysfunction-associated steatohepatitis (MASH). After 52 weeks of therapy, throughout all the dose ranges examined, 69% of sufferers noticed their MASH resolve with no additional worsening of liver fibrosis (toughening of the tissue). Over the identical interval, 51% of the sufferers noticed their fibrosis enhance by a minimum of one customary grade, and a big majority of sufferers additionally noticed their diploma of liver fats decline by greater than 30%.
These are very constructive outcomes, particularly the therapeutic of fibrosis in most sufferers, as fibrosis has historically been a tough symptom to deal with in MASH. VK2809 thus appears destined to advance into section 3 trials and maybe past; that is a brand new purpose to purchase Viking inventory.
It is also an extension of the primary investment thesis for doing so. Per a report by Imaginative and prescient Analysis, the marketplace for MASH medicine could possibly be value greater than $16 billion by 2030; others see it rising to be practically 50% bigger than that, and sooner. The chance is prone to be large both method. Viking’s addressable market in all probability will not be as massive as that proper off the bat, however with further research and development (R&D) work, it may plausibly attain many of the market finally.
At the moment, Madrigal Prescribed drugs is the one competitor out there for MASH therapeutics, though Novo Nordisk and different firms are additionally on the verge of getting into it. That signifies that if Viking can get VK2809 out the door after finishing section 3 scientific trials, it will have a superb probability to safe a major share of the market and thus generate loads of income over time. However there’s additionally a threat that its late-stage scientific trial information will fail to show superiority or significant benefits relative to Madrigal’s candidate, which may ship a blow to the inventory.
There are already quite a lot of causes to purchase this inventory
As favorable as the brand new information are, VK2809 is not the one program in Viking’s pipeline, neither is it essentially the most developed, or the one with the very best potential for earnings.
The star of the present is VK2735, the biotech’s candidate for treating weight problems, which is a market that could possibly be value as a lot as $100 billion by round 2030. The corporate not too long ago wrapped up its section 2 scientific trials with nice outcomes, and it’s totally possible that its injected formulation will enter late-stage testing subsequent 12 months. Its oral formulation will provoke a section 2 trial earlier than the top of this 12 months, and (assuming it performs as properly and finally earns approval) would possibly finally have a fair bigger whole addressable market.
What’s extra, Viking has round $930 million in money, equivalents, and short-term investments. That is prone to be greater than sufficient juice to push a minimum of VK2735 to commercialization with out the corporate taking over debt or issuing extra shares of its inventory. Whether or not it has sufficient sources to do the identical with its MASH program on the identical time is much less clear, however given the scale of its battle chest relative to its trailing-12-month working bills of $134 million, it’s possible.
So, inside the subsequent three years or so, it is simple to ascertain this biotech having two completely different blockbuster drugs available on the market. For a pre-revenue enterprise like Viking, that is very bullish, so the outlook on this inventory is sort of favorable.
Don’t miss this second probability at a probably profitable alternative
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Proper now, we’re issuing “Double Down” alerts for 3 unbelievable firms, and there will not be one other probability like this anytime quickly.
*Inventory Advisor returns as of November 25, 2024
Alex Carchidi has no place in any of the shares talked about. The Motley Idiot recommends Novo Nordisk. The Motley Idiot has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
