Viking Therapeutics Inc.’s inventory soared 100% early Tuesday, after the corporate introduced certain effects from a Section 2 trial of its weight-loss drug VK2735, a GLP-1 receptor agonist that it’s growing in each injectable and oral shape as a remedy for weight problems and diabetes. The trial met all number one and secondary endpoints, appearing statistically vital discounts in frame weight in any respect doses in comparison with placebo, the corporate stated. Sufferers receiving weekly doses of the drug misplaced as much as 14.7% in their frame weight from baseline after 13 weeks. The remedy was once secure and well-tolerated with 95% of difficult occasions that had been most commonly gastrointestinal deemed gentle or average.
“As much as 88% of sufferers in VK2735 remedy teams accomplished >=10% weight reduction, in comparison with 4% for placebo,” Viking
VKTX
stated in a observation.
Viking is making plans to fulfill with the Meals and Drug Management to talk about subsequent steps and can host a convention name at 8 a.m. Japanese Time with additional main points.
The inside track will cheer buyers in search of a inexpensive access to the weight-loss drug development than presented by means of the 2 leaders within the box, Eli Lilly & Co. Inc.
LLY
and Denmark’s Novo Nordisk.
NVO
NOVO.B
Viking’s inventory closed Monday at $38.48, whilst Eli Lilly closed at $771.92 and Novo Nordisk’s ADRs closed at $123.49.
Viking’s inventory can’t but be evaluated by means of conventional ahead price-to-earnings or price-to-sales ratios. Consensus estimates amongst analysts polled by means of FactSet had been damaging via 2026, sooner than the marketplace open on Tuesday. Consensus gross sales estimates for Viking via 2026 had been 0 for 2024, $1 million for 2025 and $58 million for 2026.
Ten analysts running for brokerage companies polled by means of FactSet duvet Viking and all have purchase scores at the inventory. The estimates could also be modified considerably over coming days to replicate Tuesday’s information.
In accordance with Monday’s remaining costs, the ahead price-to-earnings ratio for Eli Lilly was once 57.7. The ahead P/E for Novo Nordisk’s Magnificence B American depositary receipts was once 35.7.
Via comparability, weighted ahead P/E ratios had been 20.6 for the S&P 500, 19.6 for the S&P 500 healthcare sector, 17.4 for the S&P 500 biotechnology sector trade staff and 19.5 for the S&P 500 pharmaceutical trade staff, in keeping with FactSet.
Viking’s injectable and oral therapies use the similar mechanism as Novo Nordisk’s Wegovy and Ozempic and Lilly’s Mounjaro, mimicking the results of GLP-1, a intestine hormone that may assist regulate blood-sugar ranges and scale back urge for food. GLP stands for glucagon-like peptide.
The Section 2 trial concerned 176 adults who’re overweight, or obese, with a minimum of one weight-related comorbid situation.
Learn additionally: Eli Lilly’s quarterly effects most sensible estimates as weight problems, diabetes medication acquire insurance plans
Viking may be growing a remedy for NASH, or nonalcoholic steatohepatitis. NASH is a extra serious model of nonalcoholic fatty liver illness, or NAFLD, a spread of stipulations that happens when extra fats builds up in liver cells.
NASH is the principle explanation why that sufferers require liver transplants and there are top hopes for the remedies lately in construction.
For extra, see: Within the NASH drug increase: New medication for a ‘silent’ liver illness that is affecting hundreds of thousands close to FDA approval
The inventory has received 250% within the closing twelve months, whilst the S&P 500
SPX
has received 27%.
The top ahead P/E ratios for Elli Lilly and Novo Nordisk replicate analysts expectancies for endured fast will increase within the firms’ gross sales and revenue. Right here’s a comparability of anticipated compound annual enlargement charges (CAGR) for the firms, the S&P 500 and 3 trade teams via 2025:
Corporate
Ticker
Estimated gross sales CAGR from 2023 via 2025
Estimated EPS CAGR from 2023 via 2025
Eli Lilly and Co.
LLY
21.8%
68.6%
Novo Nordisk A/S ADR Magnificence B
NVO
20.7%
22.5%
S&P 500
SPX
5.4%
12.1%
S&P 500 healthcare sector
6.4%
14.1%
S&P 500 biotechnology trade
4.0%
9.6%
S&P 500 pharmaceutical trade
5.8%
26.7%
Supply: FactSet
Further reporting by means of Philip van Doorn.
