The small-cap pharmaceutical firm often is the subsequent in line as takeover fever heats up.
Shares in Viking Therapeutics (VKTX 5.79%) had been up greater than 16% within the week to Thursday at 1 pm. The transfer comes after the announcement of one other acquisition of a small-cap biopharmaceutical firm by a pharmaceutical big. This time, it is Novo Nordisk paying $5.2 billion for Akero Therapeutics, a deal that follows scorching on the heels of Pfizer‘s $7.3 billion deal to purchase Metsera.
What do these developments need to do with Viking Therapeutics?
There are two key issues. First, the offers counsel that the fervor for mergers and acquisitions within the business is heating up, and because it does, the checklist of candidates will get smaller.
Second, each offers have a connection to the burden loss market, as Novo Nordisk is a number one participant out there, and Metsera’s weight problems drug candidates assist fill a niche in Pfizer’s pipeline.
That is related for Viking Therapeutics as a result of it has an weight problems drug, VK2735, in a stage 3 trial (subcutaneous kind) and just lately accomplished a part 2 trial of VK2735 in oral kind, albeit with disappointing security and tolerability information (efficacy was good).
Picture supply: Getty Pictures.
Nonetheless, a bigger pharmaceutical firm (who’ve extra sources and expertise to take a drug via part 3) could also be prepared to attempt to accomplice with Viking or purchase the corporate outright to take oral VK2735 via part 3.
The chance seems considerably larger in gentle of the present deal move within the business.
Lee Samaha has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Pfizer. The Motley Idiot recommends Novo Nordisk and Viking Therapeutics. The Motley Idiot has a disclosure coverage.
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