Viking Therapeutics (VKTX.US) closed up more than 11%! Received a "hold" rating from JP Morgan.

J.P. Morgan pointed out that the American small pharmaceutical company Viking Therapeutics (VKTX.US) is about to announce the early results of the weight loss drug VK2735. J.P. Morgan rates the stock as "overweight," with a target price of $80, and has added the stock to its watchlist. Boosted by this news, Viking Therapeutics (VKTX.US) rose 11.31% on Wednesday, closing at $60.83. Viking Therapeutics will present the relevant trial data at a medical conference in San Antonio, Texas in early November. J.P. Morgan analyst Hardik Parik stated, "We recommend being bullish on the data to be announced about VK2735, as we believe this will lead to a significant increase in Viking Therapeutics' stock price." Data shows that the peptide GLP-1/GIP dual receptor agonist VK2735 currently has two formulations, a subcutaneous injection (weekly) and an oral formulation (daily). The once-weekly subcutaneous injection of VK2735 met primary and all secondary endpoints in the Phase 2 VENTURE study for obesity. Patients treated with a 15mg dose for 13 weeks experienced a statistically significant weight loss of 14.7% (14.6 kg, approximately 29.2 lbs) compared to baseline. The weight of patients continued to decrease throughout the study, with no observed plateau by week 13. VK2735 demonstrated good safety and tolerability in the trial. Viking has received written feedback from the U.S. FDA and plans to advance the pipeline into Phase 3 development. The company also expects to have an end-of-Phase 2 meeting with the FDA later this year. On the other hand, the oral tablet form of VK2735 also showed good safety and tolerability, as well as a positive trend in clinical efficacy in a Phase 1 study. Subjects reported up to a 5.3% weight loss after daily oral dosing for 28 days (2.5 mg to 40 mg). Dose escalation studies are underway, with Viking planning to initiate a Phase 2 trial of this project in the fourth quarter of this year. The positive trial results for VK2735 pushed Viking Therapeutics' stock price to a record high of $99.41 at one point, leading many to believe that this unassuming small pharmaceutical company could become a target for acquisition by other pharmaceutical giants. However, the stock price has since fallen by nearly 40% from its peak. For this stock, a new set of trial data or news of acquisition by other pharmaceutical giants may serve as a catalyst for its stock price. PwC has stated that many large pharmaceutical companies are facing an impending patent cliff that will impact key drug sales, potentially prompting more mergers and acquisitions with smaller biotechnology companies to offset revenue losses.