Jim Cramer Says You Should Not Buy These 11 Stocks

3. Viking Therapeutics Inc (NASDAQ:VKTX)

Number of Hedge Fund Investors: 52

When asked about California-based biotech company Viking Therapeutics Inc (NASDAQ:VKTX) in a latest program, Jim Cramer said:

“I even like the Vikings more than I like Viking Therapeutics. That says something because it ain’t that good.”

Instead of Viking Therapeutics Inc (NASDAQ:VKTX), Cramer recommended the questioner to pile into Eli Lilly, a stock he’s been recommending for months.

“Step your game up, partner!,” Cramer urged the questioner.

Viking Therapeutics Inc (NASDAQ:VKTX) is a weight loss stock which is why it’s been in the news lately. Earlier this year the stock jumped after Viking Therapeutics Inc’s (NASDAQ:VKTX) GLP-1/GIP receptor agonist VK2735 led to a mean body weight reduction of up to 15% over 13 weeks in a Phase 2 trial called VENTURE. However, the stock recently fell after Swiss pharma company Roche said its dual GLP-1/GIP receptor agonist, CT-388, caused roughly 19% average weight loss in a Phase 1 trial. In March, the stock jumped after Viking Therapeutics Inc (NASDAQ:VKTX) said up to 57% of patients who received oral tablet VK2735 lost 5% of their body weight.

Analysts believe being a small player in the weight loss industry, Viking Therapeutics Inc (NASDAQ:VKTX) could be a takeover target of a major company looking to compete with giants like Eli Lilly and Novo Nordisk.

Carillon Eagle Small Cap Growth Fund stated the following regarding Viking Therapeutics, Inc. (NASDAQ:VKTX) in its first quarter 2024 investor letter:

Viking Therapeutics, Inc. (NASDAQ:VKTX) is a biotechnology company focused on obesity and nonalcoholic steatohepatitis (NASH), a chronic liver disease affecting a large population worldwide. The stock took off after the company unveiled results from a study of its lead injectable drug for obesity. It demonstrated strong overall weight reduction compared to the leading weight loss drug, tirzepatide. Investors have been excited about the potential size of the glucagon-like peptide 1 (GLP-1) agonist market, and it was an impressive achievement for a smaller, independent lab to make such a meaningful breakthrough. Additionally, the oral version of the drug also appears to have very strong weight reduction over a four-week period.”