Here's Why This Obesity Drug Company's Share Price Soared Today
Key Points
The company's lead drug candidate is in a phase 3 trial, and enrollment is progressing well.
The drug is also being tested in oral formulation, and there's plenty of value in Viking's pipeline.
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In common with many other small-cap biotech stocks, Viking Therapeutics' (NASDAQ: VKTX) share price tends to be volatile as investors react to the ebb and flow of news from the company. Today was an up day with the stock rising more than 10% by 12:30 p.m. ET.
Why Viking Therapeutics' stock soared
The move comes on the day the company released its third-quarter earnings report and updated the market on the progress of its clinical trials.
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The company's lead drug candidate, VK2735 (obesity), is being trialled in subcutaneous (injectable) and oral form, with a phase 3 study underway in its subcutaneous form. Management reported that enrollment in the phase 3 "Vanquish" trial is going well, with CEO Brian Lian noting that enrollment was "maybe a little ahead of schedule" on the earnings call.
VK2735 in oral form is a bit more complicated, not least because investors were left disappointed by the safety and tolerability data from the top-line results of a phase 2 trial reported earlier in the year -- the efficacy results were satisfactory, though. However, the story isn't quite over for the oral formulation, as the biotech company's management recently announced a phase 1 trial to explore weekly subcutaneous dosing, followed by maintenance dosing with either the oral or subcutaneous form.
Image source: Getty Images.
In addition, according to the earnings release, "Viking plans to meet with regulatory authorities in the fourth quarter to discuss next steps with oral VK2735."
These developments are positive and indicate that there's plenty of value left in Viking's pipeline, which is what buoyed investors today.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Viking Therapeutics. The Motley Fool has a disclosure policy.
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