SMMT & VKTX Soar in 2024 US Biotech Market!
Since the start of 2024, $Summit Therapeutics PLC(SMMT)$ and $Viking Therapeutics(VKTX)$ have seen their share prices skyrocket, reaching 220% and 179% gains respectively, despite recent pullbacks.
And according to Wall Street analysts, these biotech stocks still have plenty of room to grow. We can't ignore the strong momentum of these stocks.
1. $Summit Therapeutics PLC(SMMT)$
SMMT' stock price soared in late May this year. But before that, this US biotech stock had a rapid fall, losing up to 55% within the year.
But SMMT came back with a bang! They reported stunning results from a phase 3 clinical trial of their candidate therapy. The bispecific antibody ivonescimab combined with chemotherapy showed overwhelming efficacy as a first-line treatment for PD-L1-positive non-small cell lung cancer (NSCLC), outperforming $Merck(MRK)$ cancer immunotherapy Keytruda.
The progression-free survival (PFS) of patients treated with ivonescimab and chemotherapy achieved "statistically significant and clinically meaningful improvement" compared to those treated with Keytruda.
Wall Street thinks SMMT still has plenty of upside potential. All six analysts surveyed by LSEG in June gave the stock a "Buy" or "Strong Buy" rating, with a 12-month average target price nearly 27% higher than the current market price.
2. $Viking Therapeutics(VKTX)$
VKTX' stock price has surged 179% so far this year, trailing Summit but still impressive. At its peak, the year-to-date gain was nearly 408%! The catalyst for this US biotech stock's price explosion was also a significant clinical trial success.
In late February, VKTX reported results from a phase 2 study of its weight loss drug VK2735, showing a median placebo-adjusted weight loss of up to 13.1% with good safety.
Wall Street is also bullish on Viking's prospects, with a 12-month target price indicating a potential upside of nearly 120%. Even the most pessimistic forecast is still 73% higher than the current market price.
Apart from its weight loss drug, VKTX' other therapies also have promising development prospects, such as treatments for non-alcoholic steatohepatitis (NASH) and the rare genetic disease X-linked adrenoleukodystrophy (X-ALD).
If its research projects continue to achieve clinical successes, VKTX could become a hot acquisition target.
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