JPMorgan has reevaluated the valuation for Viking Therapeutics Inc. (VKTX) and Structure Therapeutics Inc. (GPCR), identifying them as attractive pure-play options for investment in the T2D/obesity market. Analyst Hardik Parikh points to several factors for this positive outlook, including potential strategic partnerships with pharmaceutical companies, clinical trial data, and clarity on the incoming administration’s policies regarding GLP-1 access.
- Viking Therapeutics and Structure Therapeutics are considered attractive partners for pharmaceutical companies looking to quickly enter the T2D/obesity market.
- The analyst notes that many pharmaceutical companies, beyond Merck & Co. Inc. (MRK), could become active in this space, providing ample opportunities for strategic partnerships.
- Viking Therapeutics presented new clinical data from its VK2735 obesity program at ObesityWeek 2024, showing dose-dependent reductions in mean body weight from baseline, up to 8.2%.
- JPMorgan suggests that the weight-loss effectiveness of VK2735 in its upcoming Phase 3 trial could slightly surpass Zepbound's ~22% reduction at 72 weeks and remain competitive with CagriSema.
- However, Eli Lilly’s retatrutide may set a higher efficacy standard, potentially achieving weight loss in the high 20% range, based on Phase 3 data expected in 2026.
- Structure Therapeutics has selected ACCG-2671 as its lead oral small molecule amylin receptor agonist for obesity and related diseases, with Phase 1 clinical development expected by the end of 2025.
- In November, Structure Therapeutics dosed the first patient in the Phase 2b ACCESS trial of GSBR-1290 for obese or overweight patients with weight-related comorbidity.
Despite the competitive landscape, the tolerability of VK2735 could offer an advantage over retatrutide, which is expected to have slightly more side effects than Zepbound. The stock prices of Viking Therapeutics and Structure Therapeutics experienced slight declines at the time of publication.
