On Tuesday, an analyst from BTIG reaffirmed a Buy rating on shares of Viking Therapeutics (NASDAQ: NASDAQ:VKTX), maintaining a price target of $125.00. The endorsement comes after Amgen (NASDAQ:AMGN)'s release of their 52-week Phase 2 trial results for MariTide, a medication designed for weight management. The trial data revealed approximately 20% weight loss in obese patients, which was seen as comparable to results from a similar drug, tirzepatide. The reported side effects included vomiting rates of less than 20% and gastrointestinal-related discontinuations of less than 8%.
The analyst noted that expectations were high for Amgen's MariTide program before the data was released. However, with the results now available, Viking Therapeutics' subcutaneous drug VK2735 is viewed as remaining competitive in terms of both efficacy and safety. Viking Therapeutics is planning to explore monthly dosing in their clinical studies as they progress towards Phase 3 trials.
The data for Viking's VK2735 is particularly significant as it suggests the potential for monthly dosing, which could offer a more convenient treatment regimen for patients. This aspect of the drug's development is being closely watched as Viking Therapeutics prepares for the next stages of clinical trials.
Viking Therapeutics' focus on advancing VK2735 into Phase 3 trials underscores the company's commitment to addressing obesity, a major health concern worldwide. With the latest endorsement from BTIG, Viking Therapeutics appears poised to continue its research and development in this therapeutic area.
Investors and industry observers will likely keep a close eye on Viking Therapeutics as they move forward with their clinical trials, aiming to bring new and effective weight management solutions to the market. The maintained price target of $125.00 by BTIG reflects confidence in Viking's potential and the prospects of its leading drug candidate, VK2735.
In other recent news, Amgen has been in the spotlight for various developments. The biotechnology company reported a 23% increase in its Q3 revenues, reaching $8.5 billion. Projections for 2024 revenues range between $33.0 billion and $33.8 billion. The company also announced the appointment of Howard Chang, M.D., Ph.D., as its new Senior Vice President of Research and Chief Scientific Officer.
Amgen's investigational drug, MariTide™, has garnered attention due to its potential efficacy in weight loss management. Despite initial concerns about side effects, Piper Sandler reaffirmed its Overweight rating on Amgen, citing the drug's potential to achieve weight loss more rapidly than its comparator, tirzepatide. Morgan Stanley (NYSE:MS) maintained an Equalweight rating, projecting worldwide unadjusted sales of MariTide to reach approximately $5.9 billion by 2033.
Citi initiated coverage on Amgen with a neutral rating and a $335 price target, focusing on the potential impact of MariTide. Similarly, other analyst firms such as TD (TSX:TD) Cowen, Jefferies, and Cantor Fitzgerald have maintained their Buy or Overweight ratings for Amgen, with price targets ranging from $383 to $405. BMO (TSX:BMO) Capital Markets has also maintained an Outperform rating on Amgen with a price target of $362.00, while Barclays (LON:BARC) reiterated an Equalweight rating, maintaining a price target of $315.00.
InvestingPro Insights
As Viking Therapeutics continues to advance its weight management drug VK2735, it's worth considering the competitive landscape, particularly Amgen's position in the market. According to InvestingPro data, Amgen boasts a substantial market capitalization of $145.38 billion, reflecting its significant presence in the biotechnology sector. The company's revenue growth of 21.25% over the last twelve months and a quarterly revenue growth of 23.18% in Q3 2024 indicate strong financial performance, which could support continued investment in programs like MariTide.
InvestingPro Tips highlight that Amgen is a prominent player in the Biotechnology industry and has raised its dividend for 14 consecutive years, demonstrating financial stability that could fuel ongoing research and development efforts. Additionally, Amgen's stock generally trades with low price volatility, which may appeal to investors looking for stability in the volatile biotech sector.
It's important to note that InvestingPro offers 10 additional tips for Amgen, providing investors with a more comprehensive analysis of the company's financial health and market position. These insights could be valuable for those monitoring the competitive dynamics between established players like Amgen and emerging companies like Viking Therapeutics in the weight management drug market.
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