Viking Therapeutics recent 50% selloff ‘excessive,’ says William Blair

William Blair says Structure Therapeutics’ (GPCR) positive Phase Ib results of GLP-1 receptor agonist GSBR-1290 on Friday in otherwise healthy overweight or obese individuals have read-through to the oral formulation of VK2735 from Viking Therapeutics (VKTX). GSBR-1290’s weight loss magnitude is “highly encouraging and could raise the bar” for the oral formulation of VK2735 while also posing a competitive threat, the analyst tells investors in a research note. However, the firm believes the recent selloff of over 50% in Viking shares is “excessive.” Blair’s conviction in Viking shares “is materially increased as the company heads into various catalysts.” The firm keeps an Outperform rating on the shares.