Eli Lilly's Shares Surge 39%, Strong Outlook for Weight Loss Drug Market
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Stock Performance: Eli Lilly's shares soared 39% over the past year, outperforming many tech growth stocks, indicating strong growth potential within the pharmaceutical industry.
- Weight Loss Market Outlook: The company's weight loss drug tirzepatide has significantly boosted revenue, with projections suggesting the obesity drug market could reach nearly $100 billion by the end of the decade, highlighting robust demand.
- Viking Therapeutics Progress: Viking's VK2735 has reached late-stage development, with phase 2 trials showing weight loss of up to 14.7%, indicating competitive potential against Lilly's offerings.
- Market Competition Risks: While Viking has yet to commercialize its products, potential success could attract partnerships or acquisitions from larger pharmaceutical firms, presenting risks during drug development but also substantial rewards if successful.
Discover Tomorrow's Bullish Stocks Today
Receive free daily stock recommendations and professional analysis to optimize your portfolio's potential.
Sign up now to unlock expert insights and stay one step ahead of the market trends.
Analyst Views on VKTX
Wall Street analysts forecast VKTX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VKTX is 97.00 USD with a low forecast of 70.00 USD and a high forecast of 125.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
12 Buy
0 Hold
0 Sell
Strong Buy
Current: 30.410
Low
70.00
Averages
97.00
High
125.00
Current: 30.410
Low
70.00
Averages
97.00
High
125.00
About VKTX
Viking Therapeutics, Inc. is a clinical-stage biopharmaceutical company that is focused on the development of therapies for the treatment of metabolic and endocrine disorders. Its clinical programs include VK2735, a novel dual agonist of the glucagon-like peptide 1 and glucose-dependent insulinotropic polypeptide receptors for the potential treatment of various metabolic disorders. It is evaluating an oral formulation of VK2735 in a Phase II trial. It is also developing VK2809, a novel, orally available, small molecule selective thyroid hormone receptor beta agonist for the treatment of lipid and metabolic disorders. Its newest program is evaluating a series of internally developed dual amylin and calcitonin receptor agonists for the treatment of obesity and other metabolic disorders. In the rare disease space, it is developing VK0214, a novel, orally available, small molecule selective thyroid hormone receptor beta agonist for the potential treatment of X-linked adrenoleukodystrophy.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Strategy Analysis for Biotech Stocks
- Viking Therapeutics Outlook: Viking Therapeutics is developing weight-loss drug VK2735, currently in phase 3 studies, and despite competition, its mid-stage results are stronger than many larger firms, with clinical progress expected in 2026 potentially boosting stock prices.
- New Drug Development: The company is also working on a new weight management candidate set to enter clinical trials this year, and if successful in clinical and regulatory aspects by 2028, it could yield long-term returns for investors.
- BioNTech Clinical Progress: Although BioNTech's financial results have been inconsistent, its cancer drug BNT113 is undergoing late-stage trials and has received FDA Fast Track designation, with important data expected this year that could enhance market performance.
- Rich Drug Pipeline: BioNTech is also advancing Trastuzumab Pamirtecan for endometrial cancer in phase 3 studies, and if these drugs are launched in the coming years, it will significantly improve financial results, thus providing superior returns for shareholders.
Continue Reading
Eli Lilly vs. Viking: Who Will Dominate Weight Loss Market?
- Market Leadership of Eli Lilly: Eli Lilly's weight loss drugs Mounjaro and Zepbound generated over $10 billion in sales last quarter, demonstrating strong growth potential in the weight loss market while solidifying the company's leadership against Novo Nordisk.
- Regulatory Catalyst for New Drug: Lilly is seeking regulatory approval for its oral weight loss drug orforglipron, and if approved, it could act as a positive catalyst for stock performance, further boosting its market share.
- Clinical Progress of Viking: Viking's injectable and oral candidates are meeting trial goals, and the company ended the last quarter with over $700 million in cash, providing robust support for clinical development and indicating future growth potential.
- Market Opportunities and Risks: Although Viking has no products on the market yet, its market value of nearly $4 billion suggests significant upside potential if it secures regulatory approval and begins generating product revenue, positioning it as a potential millionaire-maker stock.
Continue Reading