Two Biotech Stocks to Watch: Viking Therapeutics and Axsome Therapeutics for Potential Double in Five Years

Viking Therapeutics and Axsome Therapeutics are biotech stocks with potential to double in the next 5 years. Viking Therapeutics has strong phase 2 results for its oral GLP-1 weight management medicine, VK2735, and a promising therapy for metabolic dysfunction-associated steatohepatitis (MASH), VK2809. Axsome Therapeutics has made significant regulatory progress, including FDA approval for its migraine treatment, AXS-07. Both companies have catalysts in place for growth and could record a compound annual growth rate of 14.9% through 2030.

Viking Therapeutics (VKTX)

Viking Therapeutics has been underperforming in recent months, with its stock losing over 20% in the past month. This decline can be attributed to mixed top-line results from a mid-stage study evaluating the safety and efficacy of its oral formulation of the obesity drug, VK2735. Despite the mixed results, Viking Therapeutics has a strong pipeline with promising candidates for obesity and other indications [1].

The company's oral GLP-1 weight management medicine, VK2735, has demonstrated superior weight reduction capabilities in both oral and subcutaneous (SC) formulations. Viking Therapeutics has also reported encouraging results for its therapy targeting metabolic dysfunction-associated steatohepatitis (MASH), VK2809. Additionally, the company is pursuing collaboration opportunities for advancing the development of drugs targeting non-alcoholic steatohepatitis (NASH) and X-linked adrenoleukodystrophy (X-ALD) indications [1].

However, Viking Therapeutics faces stiff competition in the obesity space, with major players like Eli Lilly (LLY) and Novo Nordisk (NVO) dominating the market. The obesity market in the United States is expected to reach $100 billion by 2030, with companies racing to introduce oral weight-loss pills. While Viking Therapeutics has a strong pipeline, its lack of a stable revenue stream and significant cash burn due to ongoing clinical studies remain concerns [1].

Axsome Therapeutics (AXS)

Axsome Therapeutics has made significant regulatory progress, with the FDA approval of its migraine treatment, AXS-07. This approval provides a strong catalyst for growth and could drive a compound annual growth rate (CAGR) of 14.9% through 2030. The company's pipeline includes therapies targeting various neurological and psychiatric disorders, with a focus on central nervous system (CNS) disorders [2].

Both Viking Therapeutics and Axsome Therapeutics have the potential to double in the next 5 years, driven by their strong pipelines and regulatory catalysts. However, investors should remain cautious and monitor the companies' progress closely, as both face significant challenges and uncertainties.

References

[1] https://finance.yahoo.com/news/viking-therapeutics-loses-20-month-143000764.html

[2] https://www.nasdaq.com/articles/viking-therapeutics-loses-20-month-how-play-stock