Viking Therapeutics (VKTX) inventory rocketed Thursday after the corporate mentioned it is exploring a month-to-month dose of its weight-loss drug. The information is a blow to weight problems kingpins Novo Nordisk (NVO) and Eli Lilly (LLY).
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How Novo Nordisk, Wegovy And Ozempic Are Altering The Weight-Loss Recreation For Sufferers And Buyers
The small biotech firm additionally mentioned it’ll speed up its under-the-skin shot, dubbed VK2735, immediately into final-phase testing following a gathering with the Meals and Drug Administration. This means an accelerated pathway, Leerink Companions analyst Thomas Smith mentioned in a consumer notice. Beforehand, Viking deliberate for a Part 2b research.
The information rocked shares of Eli Lilly and Novo Nordisk. The duo lead the weight-loss medicine market with Zepbound and Wegovy, respectively. However their weekly pictures are dealing with shortages, that means opponents have wiggle room to leap into the market.
And Viking is the primary to announce a possible month-to-month injection.
“Whereas we discover VK2735 to be a possible best-in-class injectable compound, a once-monthly formulation could also be a big aggressive differentiator for Viking,” Maxim Group analyst Naz Rahman mentioned in a report. “Sufferers are identified to be (noncompliant) on weekly therapies, thus lowering the administration burden to once-monthly could also be a extremely enticing proposition.”
In afternoon trades on the inventory market, Viking Therapeutics inventory shot 34.4% greater to 67.74. Eli Lilly inventory misplaced 4.4%, buying and selling at 821.95. Novo Nordisk inventory fell 1.5% to 129.68.
Viking Therapeutics Inventory Makes A Bullish Transfer
Viking Therapeutics’ information is especially troubling for Eli Lilly inventory. Zepbound mimics two hormones, GLP-1 and GIP, to enhance emotions of satiety and markers of blood sugar. However Zepbound is an injection. Viking is testing its drug — which makes use of the identical mechanism — as each a shot and a capsule.
The corporate additionally introduced plans to start a 13-week research of its weight-loss drug starting within the fourth quarter. This follows “aggressive weight reduction and a clear security profile at week 4,” Leerink’s Smith mentioned.
He has an outperform score on Viking Therapeutics inventory.
“Total, we count on power in Viking Therapeutics shares on the again of (Wednesday’s) updates, with a doubtlessly expedited path for (under-the-skin) VK2735 and ongoing dose escalation for oral VK2735 that continues to counsel differentiated security/tolerability and best-in-class potential,” he mentioned.
The marketplace for oral weight-loss medicine can also be heating up. Pfizer (PFE) just lately introduced plans to maneuver its each day capsule, danuglipron, into additional testing. Roche (RHHBY) mentioned earlier this month sufferers who took its weight-loss capsule, CT-996, misplaced 6.1% extra physique weight over a month that placebo recipients.
Viking Therapeutics inventory bounded off its 50-day shifting common, MarketSurge exhibits. Viking inventory has an ideal IBD Digital Relative Energy Score of 99, placing it within the main 1% of all shares in terms of 12-month efficiency.
Observe Allison Gatlin on X, the platform previously generally known as Twitter, at @IBD_AGatlin.
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