Viking Therapeutics reports promising data for liver disease drug

Viking Therapeutics Inc (NASDAQ: VKTX) is in focus today after announcing positive Phase 2b data for its treatment for biopsy-confirmed non-alcoholic steatohepatitis (NASH).

$VKTX’s drug did significantly better than placebo

VK2809 of the biotech firm helped improve fibrosis and prevented worsening of NASH in 51% of the participants after 52-weeks of dosage.

Similar outcomes were observed in only 34% of the patients in the placebo group. Brian Lian – the chief executive of $VKTX said in a press release today:

The news arrives more than a month after Viking Therapeutics reported 26 cents a share of loss for its first financial quarter. Analysts, in comparison, had called for a wider 28 cents per share loss.

The Nasdaq listed firm ended the quarter with $963 million in cash including cash equivalents and short-term investments. Viking Therapeutics stock is still currently down more than 40% versus its year-to-date high in late February.

Is it too late to buy Viking Therapeutics stock?

VK2809 also helped 69% of the patients reach NASH resolution in a year in the Phase 2b Voyage trial. That secondary endpoint of the study was met in only 29% of the participants in the placebo group.

Both goals (improvement in fibrosis and NASH resolution) was observed in 44% of the patients on the experimental drug versus only 20% on placebo. Chief executive Brian Lian also said on Tuesday:

Still, about 6.0% of the participants discontinued the experimental drug following treatment-related adverse event. $VKTX, however, confirmed that such events were mild to moderate in the on-drug patients.

Treatment-related adverse events were observed in roughly 9.0% of the participants on placebo as well. VK2809 will rival Rezdiffra of Madrigal Pharmaceuticals that received FDA approval for the first-ever treatment of MASH (new name of NASH) this year.  

Last month, analysts at Truist Securities reiterated their “buy” rating on Viking Therapeutics stock and left their price target unchanged at $120 which suggests shares of the biotech firm could well over double from here.