rushing to create new, more potent medications. However, 2025 might be the year of the challengers.
The biotech company Viking Therapeutics is among the most promising competitors vying for a piece of the lucrative industry.
This year, the business is beginning late-stage clinical studies for an injectable weight-loss medication and mid-stage trials for an oral contender. Jefferies analysts led by Roger Song see significant value in the company based on its leading GLP-1/GIP franchise, setting a $110 price target on shares, reflecting a 223% upside to the current price of $34.
Both GLP-1 and GIP are gut hormones that assist individuals shed excess weight by regulating hunger and blood sugar levels.
Song claims that although the start of Phase 3 research for its injectable weight-loss medication may confirm Viking’s most cutting-edge pipeline medications, its Phase 2 oral trial may confirm the positive efficacy versus tolerability profile, especially for patients hoping to sustain their weight loss over the long run.
With five Hold recommendations and thirty-two Buy ratings, Song, who covers small- and mid-cap biotech companies, is generally bullish.
Song is not alone, though, as all 14 of the analysts that are presently following Viking on FactSet have a Buy rating on the company, with an average target price of $112.
If smaller businesses can create medications as successful at treating obesity as Novo’s Ozempic/Wegovy and Lilly’s Mounjaro/Zepbound, the challenger narrative is plausible. And if so, if they are able to obtain the substantial upfront expenditures necessary to initiate the large-scale production necessary to gain a significant market share.
