William Blair analyst Andy Hsieh has maintained their bullish stance on VKTX stock, giving a Buy rating today.
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Andy Hsieh has given his Buy rating due to a combination of factors related to Viking Therapeutics’ recent clinical trial results and future prospects. The Phase II trial results for the oral formulation of VK2735 showed impressive weight loss outcomes, surpassing competitors like orforglipron and high-dose semaglutide. Despite concerns about tolerability and higher discontinuation rates compared to Phase I, the 30 mg dose showed a favorable profile similar to placebo, which could be advantageous in future studies.
Furthermore, the market reaction to the trial results, which led to a significant drop in stock price, is seen as an overreaction by Hsieh. He believes the decline is unwarranted given the potential for improved tolerability in future pivotal studies with extended titration periods. Additionally, upcoming studies on both subcutaneous and oral formulations of VK2735 are expected to provide further insights and could bolster the company’s position in the obesity treatment market.