Viking Therapeutics Inc (NASDAQ: VKTX) is having yet another overwhelmingly strong day in the market today after announcing positive clinical data from a Phase 2 clinical trial yesterday. The tremendous gains likely have to do with the massive market size the drug has the potential to tap into. Today, we’ll talk about:
- The treatment that’s leading to the gains;
- what we’re seeing from VKTX stock as a result; and
- what we’ll be watching for ahead.
VKTX Continues Skyward On Clinical Data
Viking Therapeutics is having an incredibly strong start to the trading session this morning after the company announced clinical data yeaterdsy. The data came from a Phase 2 study looking into VK2809. VK2809 is being assessed as a treatment for non-alcoholic fatty liver disease, also known as NAFLD.
In the release, VKTX said that the treatment met both its primary and secondary endpoints; the statistically significant reduction of LDL-C and liver fat content respectively. Not only did the data suggest that the treatment is an effective option in the reversal of NAFLD, it also showed that the treatment was safe with no serious adverse events, and well tolerated. In fact, the study’s placebo led to more reports of diarrhea than the VK2809 cohort.
Nonetheless, companies report positive clincial data all the time and don’t run in multiples. After gaining more than 100% in the morning yesterday, the stock slowed to maintain gains just under 100%. With today’s gains added, the stock is now trading at double what it was just three days ago. So, what’s the big deal?
NAFLD is a massive market. At the moment, some estimates suggest that the market for drugs for NAFLD to grow to $35 billion per year by the year 2025. Also, with no options on the market to reverse the effects of NAFLD, a treatment that could do just that has the opportunity to take the lion’s share of the market. Adding in a relatively strong financial foundation and we see strong potential ahead for VKTX.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of VKTX, the news proved to be overwhelmingly positive. With strong clinical data that will help to support an NDA submission to the FDA and a market with massive untapped potential in mind, investors are excitedly sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:03), VKTX is trading at $21.49 per share after a gain of $2.03 per share or 10.43% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on VKTX. In particular, we’re interested in following the story surrounding the company’s continued work to bring its treatment to NAFLD patients around the world as the potential in this market is incredible. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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