Investors are paying close attention to Viking Therapeutics Inc (NASDAQ: VKTX) this morning. However, with no news released by the company via SEC filing or press release, many are scratching their heads, wondering why the stock is headed up. Today, we’ll talk about:
- The reason for the gains;
- what we’re seeing from VKTX stock as a result; and
- what we’ll be watching for ahead.
VKTX Is Up On GILD Failure
As mentioned above, Viking Therapeutics is catching the attention of investors this morning, but hasn’t released any news. So, what’s the deal? Why is the stock gaining? Well, it has to do with a competitor failure.
Recently, Gilead Sciences (NASDAQ: GILD) announced that its Phase 3 clinical trial of selonsertib, a live treatment, failed to meet its primary endpoint. This is great news for VKTX.
After all, the company is working on several treatments, one in particular that this failure opens the door for. That treatment is known as VK2809. The candidate is being designed for the treatment of fatty liver and hypercholesterolemia.
With the larger player out of the game. VKTX now has more of a possiblity of taking the lion’s share of the treatment market in this indication, should its drug be approved.
There’s also plenty more to be excited here. At the end of the day, the company has several treatments in its pipeline, many of which are already showing primise. Considering this, the value here could be tremendous in the long run should the company’s pipeline treatments receive regulatory approval.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Viking Therapeutics, the company didn’t release any news of its own. However, the Gilead failure seems to be the source of excitement for investors as it opens a big door for the company.
As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:45), VKTX is trading at $9.65 per share after a gain of $0.58 per share or 6.39% 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 robust pipeline and excited to watch as clinical results come to light. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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