JPMorgan has identified Viking Therapeutics as a key player in the GLP-1 boom, suggesting that the biopharmaceutical company has significant potential for growth. With an overweight rating and a price target of $80 per share, JPMorgan’s forecast indicates a substantial upside of more than 46% from the current market price.
Viking Therapeutics is currently focused on advancing its obesity drug VK-2735 through clinical trials, aiming to compete with established GLP-1 drugs from industry giants like Novo Nordisk and Eli Lilly. The company has announced plans for both an injectable and an oral version of the drug, with a phase 3 trial for the injectable version already underway and a phase 2 study for the oral version set to begin soon.
Investors are eagerly awaiting more information about the oral version of VK-2735, with expectations that this could serve as a significant catalyst for the company’s stock. Viking Therapeutics has already seen impressive growth in 2024, with shares rising more than 204% year-to-date, reflecting the positive sentiment surrounding the company’s potential in the market.
Analyst Hardik Parikh, in a note to investors, emphasized the importance of Viking Therapeutics’ drug profile, particularly its potential to address issues of tolerability that have been reported with existing obesity drugs in the market. By offering a more tolerable alternative, VK-2735 could carve out a significant market share, despite facing long-term challenges such as manufacturing requirements and intense competition in the industry.
JPMorgan predicts a substantial growth in the GLP-1 drug category, estimating annual sales of approximately $120 billion by 2030, with oral sales expected to contribute around $30 billion by 2035. This projection underscores the significant market opportunity for Viking Therapeutics, as it positions itself as a key player in the rapidly expanding sector.
The positive outlook from JPMorgan, combined with the advanced drug development and market potential, paints a promising picture for Viking Therapeutics in the GLP-1 boom. With ongoing clinical trials and upcoming milestones, investors and analysts alike are closely watching the company’s progress as it seeks to establish itself as a major player in the biopharmaceutical industry.