Viking Therapeutics Gains Momentum on Sector News and Analyst Confidence

Viking Therapeutics US92686J1060

Shares of Viking Therapeutics have recently advanced, buoyed by positive developments within the pharmaceutical sector and reinforced analyst sentiment. The stock climbed nearly 3% on Tuesday and continued its pre-market ascent into Wednesday. This movement is largely attributed to a significant regulatory milestone achieved by a competitor, which validates the pathway for oral obesity treatments—a core focus of Viking's own development pipeline.

On the operational front, Viking has reached a key milestone. The company announced on November 19th the completion of patient enrollment for its Phase 3 trial, VANQUISH-1, evaluating VK2735. This recruitment target was met ahead of schedule, indicating efficient trial progress. The study is assessing the subcutaneous (under-the-skin) formulation of the drug candidate for efficacy and safety.

Despite this progress, the stock has experienced notable volatility this year. Over the past twelve months, its price has fluctuated between $18.92 and $43.55. The quarterly report released in October revealed a loss per share of $0.81, which fell short of market expectations for a loss of $0.67. As is common with many biotech firms in late-stage development, research and development expenses have risen significantly. This has resulted in a loss exceeding $200 million over the last twelve months, increasing the pressure to deliver compelling clinical data.

Competitive Landscape Provides Validation

The current uptick is closely tied to a sector-wide "sympathy effect" following an announcement from Novo Nordisk. The Danish pharmaceutical giant confirmed on December 23rd that its oral GLP-1 version of Wegovy has received regulatory approval and is scheduled for market launch in January 2026.

This development is a crucial environmental signal for Viking. The approval reduces overall regulatory uncertainty for the entire class of oral weight-loss medications. Viking's lead candidate, VK2735, is being developed in both injectable and oral formulations. The oral version is considered by many investors to be a critical potential advantage in a market historically dominated by injectables.

The market responded favorably to this news: Viking's performance on Tuesday outpaced both the S&P 500 and the broader healthcare sector. Trading volume was elevated, suggesting heightened institutional interest as investor focus increasingly shifts toward anticipated 2026 catalysts.

Analyst Outlook Remains Bullish

Additional support came from an updated research note by H.C. Wainwright. Analyst Joseph Pantginis reaffirmed his "Buy" rating on December 22nd, maintaining a $102 price target. From current levels, this implies a potential upside of approximately 180%.

Pantginis emphasized the distinct profile of the VK2735 program, noting that positive data from competitors supports Viking's scientific approach. He also highlighted that the market for obesity therapies is substantial enough for multiple players, especially those offering convenient oral treatment options.

The overall analyst sentiment remains positive. The average 12-month price target stands around $87, indicating that experts see further potential relative to the current valuation. From a technical analysis perspective, the picture has also brightened. With Tuesday's close above $36, the shares moved back above their 50-day moving average of $36.05—a commonly watched indicator for near-term momentum.

The Road to 2026

Looking ahead, the focus now turns to data updates expected in 2026. Following the completion of enrollment for VANQUISH-1, the topline results from this Phase 3 study are viewed as the next major catalyst with potential for significant stock movement.

The early months of 2026 are poised to be particularly pivotal. This period will see the market introduction of Novo Nordisk's oral products, which will clarify pricing and reimbursement dynamics in the segment. Concurrently, Viking is expected to be approaching key efficacy and safety data readouts for VK2735. The recent regulatory green light for Novo Nordisk's oral GLP-1 therapy is seen as an important signal that regulators are generally comfortable with the safety profile of such treatments, potentially smoothing the regulatory path for Viking's own oral programs.