Our Stock of the Week is Viking Therapeutics (VKTX). VKTX has several drugs in development which have big potential markets. It’s lead drug, VK5211, is used muscle wasting diseases and acute rehabilitation following hip fracture surgery. The CEO recently estimated that this is at least a $1 billion market.
The company indicated that it will likely release phase two results on two of its drug in May or June of this year.
Technically the stock has traded very strongly following a secondary offering priced at $5 on February 2. The stock has not come close to testing that pricing level and has been consolidating well over the $6 level.
We are looking for a move out of the current range to the $6.50-$6.75 level and a breakout try over $7. As always we would not chase the stock at the open but would watch for a strong close. The stock faded late on Friday but it looks well positioned for another try at resistance.
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