Viking Therapeutics (VKTX) may see a "potentially impressive launch trajectory" for its experimental weight loss drug VK2735 as oral obesity treatments expand the market opportunity, Oppenheimer said in a note emailed Wednesday.
Viking's VK2735 has "an opportunity for a best-in-class profile," the note said, citing expectations that oral weight-loss drugs could play a larger role in chronic maintenance and healthy aging.
Consensus estimates for peak annual sales for Eli Lilly's (LLY) Foundayo of about $20 billion and Novo Nordisk's (NVO) Wegovy Oral of about $5 billion are "impressive in their own right" and indicate a total addressable market that should support multiple competitors, including VK2735, Oppenheimer said.
The investment firm added that it is "increasingly optimistic about the incremental opportunity for obesity pills especially in a chronic maintenance setting."
VK2735 may offer persistence and adherence advantages and its oral and injectable forms could reduce treatment gaps and avoid lengthy titration periods and side effects when switching between agents, such as from injectable Zepbound to oral Foundayo.
Oppenheimer has an outperform rating on Viking and a $100 price target.
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