Maxim Group raised its price target for Viking Therapeutics (NASDAQ:VKTX) to $8 from $5 after the company announced results of a Phase 2 hip fracture study of its VK5211 compound. The stock was changing hands at $3.07 in mid-morning trading on Nov. 28.
Analyst Jason McCarthy writes that the trial reached statistical significance in the primary endpoint of an increase in lean body mass (LBM, less head) and secondary endpoints of appendicular LBM and total LBM (including head).
“Given the positive results of the study, we have adjusted our risk profile in hip fracture from 50% down to 25%,” he added.
The primary results correlated to increases in LBM of 4.8%, 7.2% and 9.1%, respectively. The target of the study was to reach 2% to 4%. “As such, the results exceed our expectations and point to the potency of this molecule,” Mr. McCarthy said.
He said Viking now plans to prepare for a pivotal program, which could begin by mid-2018. “Given the unmet medical need and the strong results, we remain positive on Viking.”
