William Blair analyst Andy Hsieh reiterated an Outperform rating on Viking Therapeutic (NASDAQ: VKTX)

The analyst commented, "We applaud management’s torrid pace of clinical development, moving VK2735 into Phase III trials just roughly three years after starting the Phase I trial. With the enrollment of the VANQUISH program now complete, we expect potential VANQUISH-1 and -2 readouts starting around mid-2027. Investors will now focus on the Phase I maintenance study readout (expected in the third quarter), which provides a first glimpse into the weight loss magnitude of weekly 17.5 mg VK2735 over 31 weeks of treatment, coupled with various permutations of monthly or bimonthly injectable and daily or weekly oral dosing schemes. It is our view that VK2735 is uniquely positioned to optimally transition patients from the active weight loss phase to the maintenance phase, given that Viking employs the same molecule from weight loss to maintenance (as opposed to Eli Lilly’s [LLY $916.31] approach of inducing weight loss with Zepbound, a peptide-based drug, followed by maintenance with orforglipron, a small molecule)... We continue to believe that Viking’s obesity franchise offers a unique set of attractive qualities that will be viewed favorably in the lens of big pharma from an M&A perspective, especially given the recent business development fervor. This is underscored by the best-in-class potential of VK2735 with both oral and subcutaneous formulations and added optionality from the dual amylin and calcitonin receptor agonist (DACRA) program. More recently, given interest in the direct-to-patient channel, we believe investors now have multiple shots on goal, independent of a takeout scenario. Given Viking’s strong execution to date and entry into what we expect to be a data-rich period, we reiterate our Outperform rating."

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Shares of Viking Therapeutic closed at $33.20 yesterday.