Viking Therapeutics (NasdaqCM:VKTX) Soars 10% With CordenPharma Manufacturing Agreement

Viking Therapeutics (NasdaqCM:VKTX) experienced a share price increase of 10% last week, coinciding with the announcement of a multi-year manufacturing agreement with CordenPharma for its V2735 program targeting obesity. This agreement is a strategic move enhancing the company’s ability to secure a position within the potentially lucrative obesity treatment market. The market backdrop has been characterized by mixed performance, with major indexes like the Dow and Nasdaq experiencing fluctuations amid economic uncertainties and tech sell-offs. Despite this, Viking's shares stood out, likely buoyed by the positive sentiment surrounding the manufacturing deal. While broader market sentiment was affected by the tech sector's struggles and economic policy concerns, the developments for Viking's business expansion appear to have contributed positively to its stock performance in an otherwise challenging market context.

Assess the potential risks impacting Viking Therapeutics' growth trajectory—explore our risk evaluation report.

Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.

Over the past three years, Viking Therapeutics has achieved an extraordinary total shareholder return of over 800%. In comparison, the US Biotechs industry suffered a return of -4.7% over the past year, highlighting Viking's remarkable long-term performance. Several factors have been pivotal during this period. The initiation of a Phase 2 trial for VK2735, targeting obesity in 2025, and the presentation of positive Phase 2b clinical trial results for VK2809 in 2024 are key milestones. Additionally, the company's expansion with a new manufacturing agreement for the V2735 program positions it well in the obesity treatment market.

Viking's financial moves also played a significant role; the completion of a $550.035 million follow-on equity offering in early 2024 strengthened the firm's financial footing. Furthermore, the stock's inclusion in prominent indexes like the S&P Biotechnology Select Industry Index in 2023 and the Russell 1000 Dynamic Index in 2024 contributed to its visibility and appeal among investors.

Is Viking Therapeutics part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com