#Viking #Therapeutics #Hot #Stock #Slips #Latest #Obesity #Drug #Trial #Results
Key takeaways
- Shares of Viking Therapeutics fell on Monday after announcing the latest results from trials of the weight-loss drug.
- Analysts say the treatment, which is being tested in both oral and injectable forms, would be “too expensive” to try to scale up production of both versions if approved.
- The oral version caused a placebo-adjusted average weight loss of up to 6.8% in a recent trial, Viking said Monday.
Shares of Viking Therapeutics (VKTX) fell on Monday, paring early gains, as analysts questioned the future path of the developmental weight-loss drug even after news of upbeat results in clinical trials.
The company’s weight-loss drug, which is being tested in oral or injectable forms, resulted in a placebo-adjusted average weight loss of up to 6.8% of a patient’s body weight in a recent trial, Viking said Monday as part of a trial. For the oral version. Industry conference. JPMorgan analysts previously identified this conference as a potential catalyst for Viking shares, with the potential for production and sale of the treatment several clinical trials away and years away.
Viking shares, which had risen before its market debut, recently fell nearly 11% — though they are still up more than 250% this year so far.
Deutsche Bank analysts wrote Monday that they believe it would be “extremely expensive” for Viking to build the capacity to produce both oral and injectable versions of the drug in multiple dose sizes. This cost and timeline means that incumbent weight-loss giants Eli Lilly (LLY) and Novo Nordisk (NVO) have “moats built” that will make it more difficult for Viking and others to compete, they wrote.
Previous trials of Viking’s drugs have sent its shares skyrocketing several times this year — and, at times, sent shares of Eli Lilly and Novo Nordisk down on concerns their weight-loss dominance could be challenged.
#Viking #Therapeutics #Hot #Stock #Slips #Latest #Obesity #Drug #Trial #Results
