Shares of Viking Therapeutics (NASDAQ: VKTX) have soared nearly 25% in the past month, all thanks to progress with its investigational obesity and non-alcoholic steatohepatitis (NASH) candidates, which management plans to advance to late-stage development by early 2025.
Last month, alongside its second-quarter earnings results, VKTX reported that it had received feedback from the FDA regarding the next steps in the developmental pathway for the obesity drug VK2735. Based on such feedback, the company is gearing up to advance VK2735 into phase III development for obesity. Before beginning this study, management is scheduled to meet with agency officials before this year's end to discuss the study design and timing. It also plans to hold another meeting with the FDA during the fourth quarter to discuss the late-stage study design for NASH drug candidate VK2809.
These positive pipeline updates were the reason for triggering this upside. In the past month, the stock has outperformed the industry's 4.0% growth. During this timeframe, the stock has also outperformed the sector and the S&P 500. The company's shares are also trading above the 50-day and 200-day moving averages.
VKTX Stock Outperforms Industry, Sector & S&P 500
Image Source: Zacks Investment Research
Before we take things further, let's take a brief look at the factors governing the company's future prospects.
Obesity Drug Development Encouraging
In the past few years, the obesity market has been attracting investor attention thanks to the encouraging phenomenal sales performance of obesity drugs Zepbound and Wegovy which are marketed by pharma giants Eli Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO), respectively. As a result, both companies are enjoying a share price surge from investors.
Though it does not have any marketed drugs in its portfolio, VKTX is one of the few biotechs that has shown ...
