JPMorgan recently made headlines by predicting that Viking Therapeutics could become a major player in the GLP-1 market. The firm gave the biopharmaceutical company an overweight rating and set a price target of $80 per share, signaling a potential upside of more than 46% from the current stock price.
Viking Therapeutics is currently focusing on advancing its obesity drug VK-2735, which is set to undergo clinical trials. The company has announced plans for a phase 3 trial of an injectable version of the drug, as well as a phase 2 study for an oral version. The upcoming results of the oral version trial, expected in early November, are eagerly awaited by investors as a potential catalyst for stock growth.
Analyst Hardik Parikh from JPMorgan believes that Viking’s drug could offer advantages over existing GLP-1 drugs from Novo Nordisk and Eli Lilly. The company’s results are expected to show better tolerability by patients in terms of side effects, compared to competitors. This is particularly important as some patients struggle with nausea and gastrointestinal issues while on current treatments.
The forecast for the GLP-1 market is promising, with JPMorgan estimating annual sales of around $120 billion by 2030. Oral drugs are projected to account for a significant portion of these sales, with approximately $30 billion in sales by 2035. Viking’s focus on developing an oral version of its drug could position the company well to capitalize on this trend.
While the outlook for Viking Therapeutics appears positive, there are still challenges to overcome. Manufacturing requirements and intense competition in the market are significant barriers that the company will need to navigate. Additionally, the preference for oral drugs over injections among patients could influence the success of Viking’s product in the long term.
Viking Therapeutics is poised for growth in the GLP-1 market, with JPMorgan’s endorsement adding to the positive sentiment around the company. The upcoming trial results for the oral version of VK-2735 could be a key driver for the stock price, potentially propelling Viking Therapeutics to a prominent position in the industry. Investors will be watching closely as the company navigates the challenges and opportunities that lie ahead.