Richard Law CFA, an analyst from Goldman Sachs, maintained the Hold rating on Viking Therapeutics (VKTX – Research Report). The associated price target is $30.00.
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Richard Law CFA’s rating is based on several factors, primarily focusing on the competitive landscape and market challenges faced by Viking Therapeutics. Despite promising Phase 2 results for VK2735, a dual GLP-1/GIP agonist, the obesity market is highly competitive with significant barriers to entry. These include ongoing price erosion, stringent payer restrictions, and high rebates required by pharmacy benefit managers, which pose challenges for VK2735 as a standalone weight loss therapy.
Moreover, VK2735 lacks clinical evidence of additional health benefits such as improvements in Type 2 diabetes, cardiovascular, renal, and liver health, which many competing drugs have demonstrated. The imminent entry of next-generation therapies further complicates VKTX’s position as a smaller company with fewer resources. Consequently, Richard Law CFA has given a Hold rating, reflecting a cautious outlook on VKTX’s ability to compete effectively in this market.