On Friday, Viking Therapeutics (NASDAQ:VKTX) saw its price target increased to $100 from $86 by BTIG, while the firm maintained a Buy rating on the stock. The adjustment comes in the wake of the Food and Drug Administration's (FDA) accelerated approval of Madrigal Pharmaceuticals (NASDAQ:MDGL)' REZDIFFRA (Resmetirom) for the treatment of non-alcoholic steatohepatitis (NASH) in patients with stage F2 and F3 liver fibrosis.
BTIG's commentary highlighted the significance of REZDIFFRA's approval, noting it as the first drug sanctioned for NASH without any black box warnings, Risk Evaluation and Mitigation Strategies (REMS), contraindications, or the requirement for a liver biopsy for diagnosis. The drug's annual Wholesale Acquisition Cost (WAC) is set at approximately $47,400.
The approval of REZDIFFRA is seen as beneficial for other companies developing treatments for NASH, including Viking Therapeutics. BTIG suggests that Viking's VK2809 could leverage the market education and awareness efforts led by Madrigal, potentially positioning Viking as a fast follower in the NASH treatment space.
The market's attention is anticipated to shift toward Viking's upcoming 52-week histology data from the Phase 2B VOYAGE study, with results expected in the first half of 2024. The raised price target for Viking Therapeutics reflects BTIG's increased assumed annual pricing for VK2809, matching that of REZDIFFRA at $47,400.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.