1 Stock Down 34% This Year to Buy and Hold

Company Overview - Viking Therapeutics (VKTX) is a mid-cap biotech company whose shares have declined by 34% this year, indicating potential company-specific developments or broader market issues affecting its attractiveness [1] - The company is in the clinical stage, meaning it has no products on the market, generates no revenue, and is consistently unprofitable, which typically makes it less appealing to investors during periods of market volatility [2] Product Development - Viking Therapeutics is developing medicines in areas with high unmet needs, particularly in weight management, where the anti-obesity drug market is experiencing significant growth [4] - The leading candidate, VK2735, is a dual GLP-1/GIP agonist, competing in the same class as Eli Lilly's Zepbound, which is currently the market leader [4][5] - VK2735 has shown better results than most mid-stage candidates in weight management, suggesting strong potential despite the competition from larger drugmakers [5] Market Potential - Another mid-stage program, VK2809, has performed well in patients with metabolic dysfunction-associated steatohepatitis (MASH), a disease linked to obesity, which is becoming increasingly prevalent [6] - VK2809 could enter a relatively young market in the coming years, potentially generating significant sales [7] Strategic Partnerships - Viking Therapeutics has signed a multiyear manufacturing agreement with CordenPharma for VK2735, which includes the production of over a billion oral formulations and 200 million autoinjectors and syringes annually [7] - The total payments to CordenPharma will amount to $150 million through 2028, indicating that the company is planning for post-commercial activities for its leading candidate [8] Innovation Commitment - The company is also developing another weight management product in preclinical studies, which is a dual agonist mimicking the action of two gut hormones [9] - Viking Therapeutics' commitment to innovation is notable for a small biotech, although there are risks associated with the potential failure of its advanced programs in phase 3 studies [9]