Eli Lilly (LLY) and Novo Nordisk (NVO) have develop into sizzling shares over the previous yr due to their blockbuster GLP-1 medicine to deal with weight problems.
During the last yr, Lilly and Novo shares are up 72% and 44%, respectively. By market cap, Novo is the biggest firm in Europe whereas Lilly ranks eighth amongst US firms with a market cap of $900 billion.
Shares of each firms have been bolstered by promising analysis that reveals expanded indications past shedding pounds and treating diabetes, sending buyers on the hunt for the following huge breakthrough within the house.
On a current section 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] carried out,” 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 capsule, which is the holy grail and early research present that it is being very nicely tolerated.”
Higgins is not the one one who’s seen. Viking’s shares are up practically 250% this yr. At a market cap of $7 billion, its measurement is dwarfed by Novo Nordisk and Eli Lilly.
One other huge distinction with the pharma giants is that Viking would not but have any income as a result of its remedies are nonetheless in improvement. And as of June, the corporate did not even have 30 full-time workers; mixed, Novo and Lilly make use of greater than 100,000 folks.
Even with the surge in Viking inventory this yr, Higgins thinks shares are nonetheless enticing, with two potential catalysts going ahead.
One is the opportunity of being acquired: He ballparks a takeout worth at $15 billion, or roughly double right now’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 suppose it is priced in in any respect,” Higgins mentioned.
Julie Hyman is the co-host of Market Domination on Yahoo Finance. You will discover her on social media @juleshyman.
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