Viking Therapeutics (NASDAQ: VKTX) is up 881% in the last 12 months thanks to its ongoing development of a pair of therapies to treat obesity and metabolic disorders like diabetes. As you may have heard, Novo Nordisk‘s successful drugs Ozempic, Rybelsus, and Wegovy are indicated for those same conditions — and that’s helped power Viking’s shares toward the Moon.
But is there substance to the hype, and could it be possible for this biotech to turn some of its recent fame into long-lived returns for its shareholders, especially those who buy in right now? It’s definitely possible that more progress is possible, but there are a few notable risks investors should know about — so let’s check them out.
Viking Therapeutics has four clinical-stage programs, all of which are in early-stage clinical trials. Its lead program in phase 2 trials aims to treat non-alcoholic steatohepatitis (NASH), and it just reported a slew of very positive results, with more updates to come in early 2024. But the star of the show at the moment, and the reason its stock is flying, is likely its program to treat obesity, which should enter its phase 2 trials imminently.
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