Wall Street's 'Buy' Call on Viking Therapeutics Amid 19% Stock Drop: VK2735 Drug Prospects and Risk Assessment

Viking Therapeutics (NASDAQ: VKTX) stock recently dipped after a strong 19% surge in June, drawing investor attention. Wall Street analysts highlight the company's potential through its lead drug candidate VK2735, with Visible Alpha consensus price target at $91, implying a potential 150% return from current levels.

VK2735: A Dual-Formulation Game Changer in Obesity Treatment

VK2735 is being developed as a dual-formulation therapy, offering subcutaneous injections initially and transitioning to oral maintenance doses. Phase 2 data showed steeper weight loss velocity compared to competitors, raising expectations for Phase 3 trials. Subcutaneous trials are ongoing, while oral trials are set to begin in Q4 2026.

Risks and Timeline Expectations

■Questionable tolerability data from Phase 2 oral trials raises concerns.

■Subcutaneous VK2735 Phase 3 results won't be available until late 2027, with oral results delayed until 2028.

■A Phase 1 maintenance trial involving 19 weeks of subcutaneous use followed by oral/subcutaneous transitions is underway, with initial results due this quarter and oral data expected by mid-2027.

Ege Kaan Note: Viking Therapeutics' VK2735 represents a compelling play in the obesity drug space, but the delayed Phase 3 outcomes until 2027-2028 introduce significant uncertainty. While Wall Street's bullish stance aligns with momentum-driven strategies, prudent investors may prefer waiting for interim trial results to mitigate risks.