William Blair Continues to Hold a Bullish View on Viking Therapeutics (VKTX) Stock Ahead of Upcoming Catalyst Events
Over the weekend, Viking Therapeutics (VKTX) presented additional encouraging results from a Phase II study of VK5211 in patients recovering from hip fracture at the annual ASBMR meeting. As previously announced in November 2017, all doses of VK5211, an oral non-steroidal selective androgen receptor modulator (SARM), achieved the primary endpoint demonstrating statistically significant increases in total lean body mass following 12 weeks of treatment as compared to placebo.
William Blair analyst Andy Hsieh commented, “While top-line results were released late last year, we highlight that there were incrementally positive data points, including 6- minute walk test improvements (clear dose response) and intriguing fat mass reduction. Moreover, the safety profile continues to illustrate VK5211 is well tolerated, as no serious treatment-related adverse events were reported and the discontinuation rates were balanced across arms. Overall, we believe the updated clinical profile bodes well for the partnership potential for VK5211 and eventual market uptake, pending positive pivotal results. In terms of timing, we believe the new data, coupled with an agreement with the FDA in terms of the Phase III program design, will likely catalyze a partnership deal in the near term.”
The analyst concluded, “The company is working toward receiving FDA guidance in terms of a potential Phase III program for VK5211, which, combined with the data presentation over the weekend, could catalyze a potential partnership deal. Notably, we believe investors are primarily focused on the positive Phase II data presentation at the American Association for the Study of Liver Diseases Annual Conference taking place November 9-13 in San Francisco. In our view, these catalysts provide investors with multiple shots on goal.”
As such, the analyst remains bullish on VKTX shares with an Outperform rating. (To watch Hsieh’s track record, click here)
Wall Street is overwhelmingly putting its chips behind this biotech player, as TipRanks analytics exhibit VKTX as a Strong Buy. Based on 6 analysts polled in the last 3 months, all 6 are bullish on Viking stock. The 12-month average price target stands at $28.60, marking a nearly 83% upside from where the stock is currently trading. (See VKTX’s price targets and analyst ratings on TipRanks)