The weight loss drug market is "too volatile", Goldman Sachs Group, Inc. gives Viking Therapeutics (VKTX.US) a "neutral" rating.

On Tuesday, Goldman Sachs Group, Inc. began tracking coverViking Therapeutics (VKTX.US), with a "neutral" rating and a target price set at $30 per share. Goldman Sachs Group, Inc. believes that the intense competition in the weight loss drug market may weaken the potential of the company's flagship obesity drug VK2735. Analyst Richard Lau cited phase II clinical trial data for this GLP-1/GIP dual agonist, noting that VK2735 could be a strong challenger in the obesity drug market against injectable drugs and next-generation weight loss therapies. However, the current market competition is exceptionally fierce. Lau wrote, "But our in-depth analysis of the commercial landscape shows that the obesity drug market competition is extremely fierce, with high entry barriers." He pointed out issues such as ongoing price erosion and strict payer restrictions. Furthermore, unlike mature weight loss therapies like semaglutide by Novo Nordisk A/S Sponsored ADR Class B and liraglutide by Eli Lilly and Company, the potential of VK2735 in treating other chronic diseases, such as diabetes, has not been confirmed. He added, "With many next-generation therapies based on different mechanisms of action (such as triple agonists, amylin, etc.) set to enter the market, considering Viking's small size and relatively limited resources, we are not optimistic about its competitiveness."