JPMorgan has identified Viking Therapeutics as a potential key player in the GLP-1 boom. The firm has initiated coverage of the biopharmaceutical company with an overweight rating and a price target of $80 per share, representing significant upside potential.
Viking Therapeutics is currently making progress in advancing its obesity drug VK-2735. This drug is positioned to compete with existing GLP-1 drugs from major players such as Novo Nordisk and Eli Lilly. The company has announced plans for phase 3 trials of an injectable version of the drug, as well as upcoming phase 2 trials for an oral version.
Investor Expectations and Potential Catalysts
Investors are eagerly anticipating further details on the oral version of Viking Therapeutics’ obesity drug. This information is expected to be released in early November and could serve as a significant catalyst for the company’s stock price. Analysts are optimistic about the potential market impact of this new drug.
Comparison with Existing Market Players
Analyst Hardik Parikh believes that Viking Therapeutics’ drug may offer advantages over existing GLP-1 drugs, such as Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound. The company’s drug is expected to be better tolerated by patients, potentially reducing the side effects that cause some individuals to discontinue treatment.
JPMorgan forecasts significant growth in the GLP-1 market, with annual sales projected to reach $120 billion by 2030. Oral drugs, like the one being developed by Viking Therapeutics, are expected to play a key role in this market expansion, potentially accounting for $30 billion in sales by 2035.
Viking Therapeutics is positioned as a promising player in the GLP-1 boom. The company’s innovative approach to developing an obesity drug shows potential for significant market impact and investor interest. With ongoing clinical trials and positive analyst outlook, Viking Therapeutics may indeed become a major name in the biopharmaceutical industry.