Eli Lilly (LLY) and Novo Nordisk (NVO) have turn into scorching shares over the previous 12 months because of their blockbuster GLP-1 medicine to deal with weight problems.
During the last 12 months, Lilly and Novo shares are up 72% and 44%, respectively. By market cap, Novo is the most important firm in Europe whereas Lilly ranks eighth amongst US corporations with a market cap of $900 billion.
Shares of each corporations have been bolstered by promising analysis that reveals expanded indications past dropping pounds and treating diabetes, sending traders on the hunt for the subsequent massive breakthrough within the house.
On a latest phase of Good Purchase or Goodbye (video above), RSE Ventures CEO Matt Higgins made the case for Viking Therapeutics (VKTX).
“Everyone knows what Eli Lilly and what [Novo Nordisk have] executed,” Higgins, who’s invested in $VKTX, advised Yahoo Finance. “But it surely’s an enormous TAM [total addressable market]. It is a $150 billion market. And [Viking] is a biotechnology agency … and they’re onto one thing fairly superb. They’re engaged on two merchandise: One is a shot that you’d take as soon as a month, and the opposite is a tablet, which is the holy grail and early research present that it is being very properly tolerated.”
Higgins is not the one one who’s observed. Viking’s shares are up almost 250% this 12 months. At a market cap of $7 billion, its measurement is dwarfed by Novo Nordisk and Eli Lilly.
One other massive distinction with the pharma giants is that Viking does not but have any income as a result of its therapies are nonetheless in growth. And as of June, the corporate did not even have 30 full-time staff; mixed, Novo and Lilly make use of greater than 100,000 individuals.
Even with the surge in Viking inventory this 12 months, Higgins thinks shares are nonetheless engaging, with two potential catalysts going ahead.
One is the potential of being acquired: He ballparks a takeout worth at $15 billion, or roughly double right this moment’s worth.
The opposite is a convention in November, at which Viking is alleged to replace its findings round its GLP-1s.
“I do not assume it is priced in in any respect,” Higgins mentioned.
Julie Hyman is the co-host of Market Domination on Yahoo Finance. You’ll find her on social media @juleshyman.
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