Viking Therapeutics: External Validation and Same-Molecule Strategy De-Risk Obesity Program, Supporting Buy Rating

Joseph Pantginis, an analyst from H.C. Wainwright, reiterated the Buy rating on Viking Therapeutics. The associated price target remains the same with $102.00.

Joseph Pantginis has given his Buy rating due to a combination of factors that, in his view, materially strengthen the long-term investment case for Viking Therapeutics. He sees Eli Lilly’s positive Phase 3 ATTAIN-MAINTAIN results as an important external validation that an oral regimen can effectively preserve weight loss initially achieved with injectable therapies, which directly supports Viking’s oral VK2735 maintenance strategy. By demonstrating that patients can transition from injections to pills while maintaining prior weight reduction, the Lilly data meaningfully lower perceived development and commercial risk for Viking’s oral obesity program. Pantginis also expects that this high-profile success will draw additional investor attention to Viking, as the underlying mechanism and treatment paradigm increasingly align with what major pharmaceutical players are validating in late-stage trials.
At the same time, Pantginis emphasizes Viking’s unique approach of using the same molecule, VK2735, for both injectable and oral formulations as a strategic edge over competitors who switch patients to a different compound. He believes that maintaining the same active drug should facilitate a smoother and more predictable transition, which could enhance adherence, reduce the likelihood of new safety or tolerability issues, and be more attractive to physicians and payers in a chronic treatment setting. Taken together, the external de-risking from Lilly’s trial and Viking’s differentiated same-molecule strategy underpin his conviction that Viking is well positioned in the evolving obesity market. These elements collectively support his Buy rating and the view that the company’s valuation does not yet fully reflect this de-risked and commercially compelling profile.

Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of VKTX in relation to earlier this year.