Obesity Drugs Have Blockbuster Potential; Viking and Amgen Lead the Charge
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Obesity drugs have multi-billion-dollar market potential, with sales expected to reach $67B and exceed immuno-oncology sales by 2029.
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Viking Therapeutics' lead candidate VK2809 shows promise for treating NASH, type 2 diabetes, and obesity. Its second candidate VK2735 directly targets obesity.
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Amgen has two obesity drug candidates - AMG 133 targets overweight/obese adults and AMG 786 has a unique mechanism of action for treating obesity.
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Analyst Jay Olson sees Viking as undervalued compared to peers if VK2809 is successful. He gives VKTX a $40 price target.
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Olson believes Amgen can maintain long-term growth as pipeline assets like AMG 786 compensate for fading mature products. He gives AMGN a $310 price target.