Viking set to double in 'challenging' year for obesity drug developers

Altimmune

31/12/2024 16:58

** Viking Therapeutics'  VKTX.O  shares have more than
doubled this year, on track for a third successive year of gains
    ** Shares of other smaller obesity drug developers such as
Structure Therapeutics  GPCR.O , Altimmune  ALT.O  and Amgen
 AMGN.O  are set to end the year in the red 
    ** BMO Capital analysts termed 2024 a "challenging year for
obesity trade" - as investors previously got significant returns
by banking on names such as VKTX, GPCR and ALT that were
entering the weight-loss space
    ** Brokerage says that while obesity remains an "enormous"
long-term revenue opportunity, investors have become more
selective and focus on "clearly differentiated" products 
    ** In November, VKTX reported promising data of its oral
drug candidate, VK2735, but analysts raised concerns about its
ability to mass produce the treatment 
    ** Data from Amgen's closely watched weight-loss drug
MariTide failed to impress investors — and wiped off about $7
bln from the company's market cap in November 
    ** Stock has declined 9.5% this year vs a gain of about 10%
last year 
        ** Structure Therapeutics' oral obesity drug surpassed
Wall Street expectations as it helped patients reduce weight by
6.2% on average in a mid-stage study 
        ** Stock has fallen 34% this year on concerns about
competition from Roche's  ROG.S  oral drug - but mid-stage data
in 2025 is expected to be "highly influential" in determining
the company's path forward 
        ** Altimmune is down 37% this year after falling 32% in
2023; company has not provided data updates in 2024 for its
obesity drug, pemvidutide, which is in late-stage trial
    
    
        
  

        
  

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Obesity drug developers year end    https://reut.rs/3PgWujJ
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 (Reporting by Bhanvi Satija in Bengaluru)
 ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))