To The Moon

On Thu, 25 Jul 2024 - $Viking Therapeutics(VKTX)$ stock rocketed by +28.31% to $64.68 per share. This explosion comes about as the company announced that it is exploring a monthly dose of its weight-loss drug. The news came as a blow to obesity kingpins $Novo-Nordisk A/S(NVO)$ and leader $Eli Lilly(LLY)$, and their weight-loss drugs Wegovy (NVO) and Zepbound (LLY). Over 2 days, losses racked up by both: Thursday, NVO fell by -2.84% to $127.86 and fell further by -0.88% on Friday. Thursday, LLY fell by -4.5% to $821.19 and Friday, it fell further by -2.02%. The Good News. VKTX, the small biotech company also said it will accelerate its under-the-skin shot, dubbed “VK2735”, directly into final-phase testing following a meeting with the Food and Drug Administration (FDA). This, according to Leerink Partners analyst Thomas Smith, indicates an accelerated pathway, Previously, VKTX planned for a Phase 2b study. The change in VKTX progression path could possibly be due to both Novo Nordisk and Eli Lilly facing significant challenges in meeting the surging demand for their obesity drugs. Rapid increase in popularity of these medications, particularly semaglutide-based treatments like Ozempic and Mounjaro, has outpaced production capabilities leading to (a) supply shortages, (b) long waiting lists, and (c) even black-market activity. Indirectly, it created an “opportunity” for competitors like VKTX, to wiggle into the market. Analyst’s Viewpoint. Maxim Group analyst Naz Rahman reported: VK2735 is a potential best-in-class injectable compound. It is universal knowledge that patients are known to be (non-compliant) on weekly therapies. Reducing administration burden to once-monthly may be a highly attractive proposition. If VK2735 could be engineered to be a once-monthly formulation, it may be a significant competitive differentiator for VKTX. Technical Analysis. It is in plain sight that VKTX is on the burn. (see above) Stock price is trending above its 200-day and 50-day moving average (ma). For the 50-day ma, it happened only on 24 Jul 2024. With RSI coming in at “57”, is interpreted as a bullish condition. Resistance & Support. Pivot point 1st Resistance level (high) - $69.79. Pivot point 2nd Resistance level (high) - $73.61. Pivot point 1st Support Point (Low) - $63.33. Pivot point 2nd Support Point (Low) - $60.69. Growth Industry. Before you dismiss “weight loss” drug industry as a viable investment, take a look at what Reuters has reported back in May 2024. Experts to raise annual global sales forecasts for the treatments to about $150 billion by the early 2030s. A year ago, top sales estimates were in the $100 billion range. In 2023, global spending on obesity medications totaled $24 billion. $IQVIA(IQV)$ estimated in its latest 5-year outlook, and could reach $131 billion by 2028. That is +27% annual growth estimate compares with a prior projection of 13%. Final Verdict. Below is the final assessment of VKTX, on whether it is a “Buy” or not. When it comes to investing in a stock that one is unfamiliar, do you take a leap of faith and buy into VKTX with strong indicators (after research) OR do you adopt a wait-n-see attitude ? Must Read: Click on below titles to access. Give a like & help to repost ok. Thanks. META: Boom or Bust on Friday, 26 July ? Techs on Sale: NVDA, TSLA, GOOG - Buy Now ? CRWD : Post-Disaster - Bust or Boom ? Goldman Sachs Warns - DON'T Buy The Dip ! - *** recommended read *** Do you think the issue of overweight and obesity will be eradicated in the future ? Do you think you will pivot and invest in a high value weight-loss industry stock ? If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. Thank you. @Daily_Discussion @TigerPM @TigerStars @Tiger_SG @TigerEvents