Keep an eye on rebounding shares of Viking Therapeutics (SYM: VKTX).
With its obesity treatment showing solid success in trials, the stock is just starting to break higher again. From its last traded price of $75.46, we’d like to see it retest $99.41.
Earlier this year, the company reported that the injectable form of its obesity treatment helped patients lose up to 13.1% of their weight after 13 weeks. Then, the company said the tablet form of its treatment led to a weight loss of about 3.3% after 28 days in Phase 1 trials. That tablet form of the treatment is expected to enter Phase 2 trials in the second half of the year.
Fueling upside, the global obesity issue is bursting at the seams.
Right now, according to the World Health Organization, obesity has tripled since 1975. More than 1.9 billion adults were overweight, as of 2016, with more than 650 million considered obese. Plus, more than 340 million children were considered overweight in 2016, as well. It’s an issue that’s been plaguing society for quite some time.
Worse, by 2030, about 20% of the global population will be obese, according to the National Centers for Biotechnology Information.
And, as noted by Goldman Sachs, “Earlier this year, the global market for anti-obesity medications (AOMs) reached $6 billion on an annualized basis. By 2030, it could grow by more than 16 times to $100 billion, according to Goldman Sachs Research.”
In addition, according to Brian Lian, Ph.D., CEO of Viking:
“The first quarter of 2024 was an exceptional period for Viking. During the quarter, the company reported positive top-line results from the Phase 2 VENTURE study of subcutaneous VK2735 in obesity and encouraging initial data from a Phase 1 study of our novel tablet formulation of this compound.”
“We plan to meet with regulators to discuss the path forward for both programs and expect to advance each into further development later this year. In addition, in the first quarter we completed the 52-week biopsies for the Phase 2b VOYAGE study of our thyroid hormone beta receptor agonist VK2809 in biopsy-confirmed NASH and fibrosis.”
“As we’ve previously reported, this study successfully achieved its primary endpoint after 12 weeks of treatment and affirmed VK2809’s potent effect on liver fat, along with its favorable tolerability and safety profile. We plan to report data on histologic changes assessed after 52 weeks of treatment later this quarter. Finally, during the first quarter, the company completed a public offering of common stock, raising approximately $630 million of gross proceeds to aggressively develop our pipeline programs through important clinical milestones,” he added.
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