1. Viking Therapeutics Inc. (NASDAQ:VKTX)
6-Month Performance as of February 26: -56.78%
Upside Potential as of February 26: 260.17%
Number of Hedge Fund Holders: 42
Viking Therapeutics Inc. (NASDAQ:VKTX) is a clinical-stage biopharmaceutical company that develops novel therapies for metabolic and endocrine disorders. With a diverse pipeline featuring oral drug candidates like VK2809 for NASH and NAFLD, VK5211 for hip fracture recovery, and VK2735 for weight loss, it’s advancing treatments across a range of significant medical needs.
The company made progress in 2024 with positive data from several clinical trials. For obesity, its VK2735 program showed promising results. In a Phase 2 trial, subcutaneous injections led to a 14.7% average weight loss after 13 weeks. It also tested an oral version, which resulted in a 5.3% weight loss in 28 days. It’s planning a Phase 3 trial for the injectable and a Phase 2 for the oral version.
Its NASH drug, VK2809, also showed positive results in a Phase 2b trial. After 52 weeks, 63-75% of patients saw NASH resolution, compared to 29% in the placebo group. Fibrosis improvement was seen in 44-57% of patients, compared to 34% in the placebo group. The company is working with the FDA to plan a Phase 3 trial.
Viking Therapeutics Inc. (NASDAQ:VKTX) ended Q3 2024 with $930 million in cash. R&D expenses for the first nine months of 2024 were $70.7 million. Another one of its recent drugs is the VK0214, for X-ALD, which showed positive results in a Phase 1b trial and a new preclinical program for obesity.
The company’s successful weight-loss drug trials, particularly the promising oral version, have driven substantial stock appreciation and positioned Viking Therapeutics Inc. (NASDAQ:VKTX) as a strong acquisition candidate. Wasatch Micro Cap Growth US Strategy stated the following in its Q1 2024 investor letter:
“Viking Therapeutics, Inc. (NASDAQ:VKTX) also contributed during the quarter. A clinical-stage biopharmaceutical company, Viking develops therapies for metabolic and endocrine disorders. Shares of the company soared in February after its injectable weight-loss drug demonstrated best-in-class efficacy in a mid-stage clinical trial. A separate, early-stage trial testing the safety and tolerability of an orally administered version of the drug also yielded positive data. A successful oral treatment would be a game changer in a multibillion-dollar industry. We believe these results make Viking a potentially attractive target for acquisition by a larger organization.”
While we acknowledge the growth potential of Viking Therapeutics Inc. (NASDAQ:VKTX), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VKTX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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