Analyst Says Viking Therapeutics Can Quadruple Because Of Its Relationship With Ligand Scientists

Viking Therapeutics Inc VKTX is up 87 percent on Thursday, trading at $2.66.

The clinical-stage biopharmaceutical company was incorporated in 2012, and went public in 2015. At just shy of a year old, the metabolic/endocrine solutions company has seen some challenges, and is down 70 percent from its IPO price. However, analysts at H.C. Wainwright & Co. believe the company's luck may be changing.

Based upon Viking's relationship with Ligand Pharmaceuticals Inc. LGND, H.C. Wainwright's Carol Ann Werther predicts a possible quadrupling of the former.

"Ligand's scientists have been very successful in discovering new chemical entities (NCEs) that have been approved. Therefore we believe the Viking products have a better than average opportunity to be winners," Werther said.

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The Power Of Partnerships: Initiated At Buy, PT Of $6.00

Werther, citing "validated big targets," initiated coverage of Viking Therapeutics at a Buy rating. "We believe, based on past drugs developed at Ligand, there are strong odds that the VX5211, VK2809 and VX0214 may succeed where other drugs have failed due to off target side effects."

The aforementioned product candidates could disrupt the market, closing the gap in healthcare needs for individuals with certain metabolic and endocrine related conditions. According to Werther's calculations, the potential market for VK5211 alone exceeds $2 billion.

While the analyst remains cautiously hesitant based on the past failures of Viking, the assurance in the relationship with previously successful Ligand has boosted analyst confidence.

Ligand owns 49.7 percent of Viking, and Viking's programs are based upon small molecules licensed by the former.