Will Viking Therapeutics Be a Top Healthcare Stock in 10 Years?

Core Viewpoint - Viking Therapeutics has significant growth potential, but its stock has experienced volatility, losing over 40% of its value in 2023 after a 116% increase in 2022 [1][2]. Company Overview - Viking Therapeutics currently has a market capitalization of approximately $2.5 billion [2]. - The company is developing two promising drug candidates: VK2735, which has shown the ability to help patients lose around 15% of their body weight in a phase 2 trial, and VK2809, which has reduced liver fat by an average of 37% to 55% in a phase 2 trial for nonalcoholic fatty liver disease [2][3]. Market Potential - Both VK2735 and VK2809 have the potential to generate billions in revenue if they become blockbusters [4]. - The GLP-1 drug market is projected to be worth over$ 100 billion, with significant competition from major pharmaceutical companies [7]. Future Outlook - If VK2735 and VK2809 receive approval, Viking's valuation could potentially double or triple, but the company needs a more diversified drug portfolio to maximize its value [6][10]. - The timeline for revenue generation from these products could take multiple years, and the company incurred a net loss of $110 million in 2024, indicating ongoing financial challenges [9][10]. Investment Considerations - Despite the risks and uncertainties, Viking's current reduced valuation presents a potential investment opportunity due to its promising drug candidates [11]. - The company is viewed as an exciting stock to monitor, with the potential for significant long-term growth, although it may not be suitable for all investors [12].