Investors withdraw their money from shares such as Viking Therapeutics due to current uncertainty.
However, Biotech has a mid -stage candidate duo that seems incredibly promising.
Although Viking has a higher risk of higher risk, it has great potential.
10 shares we like more than Viking Therapeutics ›
Shares of Viking Therapeutics(Nasdaq: VKTX)This year, biotechnology of average capitalization decreased by 34%. This bad results may suggest that recent changes in companies have led to less attractive or that they are affected by wider market problems. At least to some extent, the latter is true, but the Viking Therapeutics thesis has not changed significantly this year. The drug manufacturer remains attractive compared to most peers of similar size. That’s why.
Viking Therapeutics is a clinical stage of biotechnology. This means that the company does not have a product on the market, does not receive any income and is constantly loss -making. Investors do not want to buy promotions for this profile, where broader shares are highly volatile due to possible macroeconomic problems. Honestly, it makes sense. The clinical stage of biotechnology is higher than the average risk. Their products can never see daylight outside the clinic, and even when they do it, many do not get high income.
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However, Viking Therapeutics is a little different. The company develops medicines in several areas where the needs are not met. First, the work of a drug manufacturer is in weight management space. In recent years, the market for anti -obesity has been growing significantly. However, analysts continue to predict that the best ones are not yet. The Viking Therapeutics Candidate in this area is a double GLP-1/GIP agonist in the field. The only approved drug of this kind is on the market Eli LillyZepbound, undeniable leader.
Being in the same class as Zepbound does not guarantee the success of the VK2735, but it is still worth emphasizing that a similar mechanism of action, which has led to Zepbound’s breakthrough and efficiency, may also seem successful for the Viking Therapeutics crown gemstone. And more importantly, the research medicine has yielded better results than almost any other candidate for average stage management, except those created by Eli Lilly and Novo Nordisk; It is an impressive biotechnology of average capitalization, taking into account much larger drug producers with much more resources, trying to dominate this market.
Another Viking Therapeutics Middle Stage Program VK2809 well succeeded in patients with metabolic dysfunction -related steathepatitis (MASH) disease, with obesity one of the main risk factors and the prevalence. However, the US Food and Drug Administration only confirmed the first Mash medicine last year, although this is likely to change soon.
The point, however, is that the VK2809 could join a relatively young market over the years and create huge sales. These two candidates are determined by the Viking Therapeutics, except for other clinical biotechnology companies in the clinical stage. It is also worth noting that Viking Therapeutics recently signed a several -year production contract with Cordenpharma VK2735. Under the terms of the agreement, Cordenparma will produce more than a billion wording of oral drugs each year, as well as more than 100 million auto -objects and another 100 million syringes per year.
Viking Therapeutics will pay Cordenpharma with a total of $ 150 million. This is a great sign for investors.
Viking Therapeutics develops other candidates, including another weight management product, which is still in preclinical investigations. After a similar project, this product is a double agonist, imitating two but two intestinal hormones: amylin, which helps regulate blood sugar levels, and calcitonin, which regulates calcium levels. There is a slow progress in this area, but the Viking Therapeutics commitment to innovation is an impressive for such a small biotechnology. Now, in phase 3, Viking Therapeutics could collapse the most advanced programs. If this happens, especially with the use of VK2735, the share price is likely to fall.
This is a high risk to consider. That is why promotions are probably not suitable for avoiding risk to avoid investors. However, those with convenience are volatility should have a strong consider starting a small stock position. If the business business is not as rare for smaller biotechnology companies, your losses will be relatively low as long as the company is a small part of your entire portfolio. However, there is a great upside -down potential that those who invest today in Viking Therapeutics could eventually enjoy.
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Prosper Junior Bakiny holds Eli Lilly, Novo Nordisk and Viking Therapeutics. Motley fool recommends Novo Nordisk and Viking Therapeutics. The Motley fool has a disclosure policy.
1 reserves this year decreased 34%to buy and detain initially The Motley Fool
