JPMorgan recently initiated coverage of Viking Therapeutics with an overweight rating and a price target of $80 per share, suggesting a significant upside potential of more than 46%. The firm believes that Viking Therapeutics could become a major player in the GLP-1 market, alongside industry giants like Novo Nordisk and Eli Lilly.

Viking Therapeutics’ Drug Pipeline

Viking Therapeutics is currently working on advancing its obesity drug VK-2735 through clinical trials. The company recently announced that an injectable version of the drug would enter a phase 3 trial, while a phase 2 study of an oral version is set to begin soon. Investors are eagerly awaiting more details about the oral version, expected to be revealed in early November, as a potential catalyst for the stock.

Analyst Hardik Parikh from JPMorgan is optimistic about Viking Therapeutics’ prospects in the obesity market. He expects Viking’s results to demonstrate that patients can tolerate VK-2735 better than existing drugs like Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound, which often cause nausea and gastrointestinal issues in patients.

The obesity drugs market, especially those that mimic incretins like GLP-1 hormones, is projected to grow substantially in the coming years. JPMorgan forecasts that the GLP-1 category could generate annual sales of around $120 billion by 2030, with oral medications representing a significant portion of that revenue. Oral drugs are often preferred by patients over injections due to convenience, cost-effectiveness, and ease of manufacturing.

Viking Therapeutics has the potential to make a significant impact in the GLP-1 market with its innovative drug pipeline and positive clinical trial results. With the backing of JPMorgan’s endorsement and optimistic forecasts, investors are closely watching the company’s developments as it seeks to carve out a niche in the competitive landscape of obesity treatments.

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