Viking Therapeutics (VKTX) stands out in the biotech world, particularly because of its knack for delivering impressive results from its cardiometabolic disease programs. The company’s track record remains untarnished, and they continue to impress investors with promising updates. Let’s dive into their latest news and explore why this is another reason to consider investing in their stock.
### Promising Market Potential Within Reach
During The Liver Meeting on November 19, Viking shared some exciting phase 2b results from one of their programs, VK2809, focused on tackling metabolic dysfunction-associated steatohepatitis (MASH). After a 52-week treatment period, 69% of participants saw their MASH condition improve without any worsening of liver fibrosis. Additionally, 51% experienced fibrosis improvement by at least one grade, and a significant number of patients had a liver fat reduction of over 30%.
These outcomes are particularly encouraging, considering how challenging it can be to treat fibrosis in MASH patients. With such positive results, VK2809 seems poised to move into phase 3 trials, strengthening the case for investing in Viking right now.
This development supports the broader investment rationale. According to Vision Research, the MASH drug market could exceed $16 billion by 2030, with some predictions suggesting even greater growth. Viking may initially capture only a segment of this market, but with ongoing R&D efforts, it has the potential to expand its reach significantly.
Currently, Madrigal Pharmaceuticals is Viking’s main competitor in the MASH space, with Novo Nordisk and others on the horizon. If Viking can successfully complete phase 3 trials and launch VK2809, it could capture a substantial market share and generate significant revenue. However, there’s a risk that late-stage trial results might not measure up to competitors like Madrigal, which could impact the stock price.
### More Reasons to Consider the Stock
While VK2809’s progress is impressive, it’s not Viking’s most mature or potentially lucrative program. The spotlight is on VK2735, their candidate for addressing obesity, a market potentially worth $100 billion by 2030. Viking recently completed phase 2 trials for VK2735 with promising results. The injectable formulation is likely heading to late-stage testing next year, while the oral version will begin phase 2 trials before year-end. If successful, the oral formulation might tap into an even larger market.
Financially, Viking is in a strong position, boasting about $930 million in cash and short-term investments. This should comfortably support VK2735’s journey to market without incurring debt or issuing additional stock. It’s less certain whether these resources will also cover the MASH program’s development, but given their cash reserves relative to $134 million in operating expenses over the past year, it’s a strong possibility.
In the next few years, Viking could potentially bring two blockbuster drugs to market. For a company yet to generate revenue, this is an optimistic outlook, making their stock an attractive option for investors.
