JPMorgan has reset the valuation for Viking Therapeutics Inc. VKTX and Construction Therapeutics Inc. GPCR.
Analyst Hardik Parikh cites a number of causes for restoration, together with pathways for strategic partnership with pharma, some scientific trial information factors and extra readability on the incoming administration’s insurance policies on GLP-1 entry.
The analyst writes that Viking Therapeutics and Construction Therapeutics are enticing pure-play choices for investing within the T2D/weight problems market alternative total.
The notice continues, saying that Viking Therapeutics and Construction Therapeutics stay enticing companions for pharmaceutical corporations trying to enter the T2D/weight problems market comparatively shortly.
It expects an inexpensive case to make that many pharmaceutical corporations, along with Merck & Co. Inc MRK, might be lively within the area. Therefore, Viking Therapeutics and Construction Therapeutics nonetheless have considerable pathways to strategic partnerships.
Viking Therapeutics and Construction Therapeutics may also help handle development gaps for pharma over time, analyst Parikh says, and sees an obvious disconnect on valuation abates over time.
The analyst sees the aggressive bar for VK2735 primarily unchanged, a minimum of within the close to time period, after Novo Nordisk A/S’ NVO section 3 Redefine-1 information confirmed weight reduction from cagriSema that’s on par with Eli Lilly And Co.’s LLY Zepbound.
The Road broadly anticipated the Redefine-1 trial of CagriSema to indicate ~25% weight reduction, elevating the benchmark injectables in growth.
Viking Therapeutics highlighted new scientific information from its VK2735 weight problems program in two poster displays at ObesityWeek 2024.
Cohorts receiving VK2735 demonstrated dose-dependent reductions in imply physique weight from baseline, ranging as much as 8.2%.
JPMorgan means that VK2735’s weight-loss effectiveness in its upcoming Part 3 trial (beginning in early 2025) might barely surpass Zepbound’s ~22% discount at 72 weeks and stay aggressive with CagriSema.
Nevertheless, the agency believes Eli Lilly’s retatrutide could set the very best commonplace for efficacy, doubtlessly reaching weight reduction within the excessive 20% vary, primarily based on Part 3 information anticipated in 2026. Whereas this creates a difficult benchmark for VK2735, its tolerability might provide an edge over retatrutide, which is predicted to have barely extra unwanted effects than Zepbound.
Final month, Construction Therapeutics chosen ACCG-2671 as its lead oral small molecule amylin receptor agonist for weight problems and associated illnesses. The compound is predicted to be in Part 1 scientific growth by the top of 2025.
In November, Construction Therapeutics dosed the primary affected person in Part 2b ACCESS trial of GSBR-1290 overweight or obese sufferers with weight-related comorbidity.
VKTX, GCPR Worth Actions: Viking Therapeutics inventory is down 0.56% at $42.65, and Construction Therapeutics inventory is down 0.25% at $27.51 at publication Monday.
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