This High-Flying Stock Just Became a Better Buy
If there were a "revelation of the year" award for each industry on the stock market, Viking Therapeutics (NASDAQ: VKTX) would be a leading contender for the biotech sector. The mid-cap drugmaker impressed investors with promising clinical progress in the hottest therapeutic area in the industry: weight loss. Viking has been rewarded. The company's shares are up substantially year to date.
However, recent developments, some of which the company revealed in its latest quarterly update, now make the stock even more attractive. Here's why.
Developing novel therapies is expensive and risky. Smaller, clinical-stage biotechs often focus their efforts on a single drug. Madrigal Pharmaceuticals, a company that earned approval for the first therapy for metabolic dysfunction-associated steatohepatitis (MASH), has no other pipeline candidates at this time. However, other clinical-stage biotechs, like Viking Therapeutics, work on several projects. One approach isn't necessarily better than the other. Focusing on a single drug avoids having to spread resources thin.
Source Fool.com
