Shares of Viking Therapeutics (VKTX) are down norther 6.22% as of noon today in New York. That comes after the stock dropped 18.84% yesterday. I think that the market thinking here by and large wrong and I’d use the big painful drop as an opportunity to buy more shares of Viking Therapeutics.
Yes, I know this is my third post (plus video) on diabetes/weight-loss drug leader Novo Nordisk (NVO) in three weeks. But the company keeps pumping out research updates that keep powering the stock higher. Think of this as a momentum stock where the momentum comes from the R&D pipeline and not moves in the share price. (The last post was https://jubakam.com/another-reason-t…-success-for-glp/) Today, the company reported early results for a next-generation oral weight loss drug called amycretin, showing a 13.1% weight loss after 12 weeks. That’s a bigger weight-loss than either Novo Nordisk’s own Wegovy or Eli Lilly’s (LLY) competing drug Zepbound. Shares of Novo Nordisk were up 8.9% today to $135.85. I added them to my Jubak’s Picks Portfolio on February 20. The position is up 11.91% since then.
Back on February 20, I posted a video recommending a buy of Novo Nordisk (NVO). In the video, “Buy GLP-1,” I said that the stock, along with Eli Lilly (LLY) was riding the momentum of increased sales of GLP-1 drugs, originally developed to treat diabetes, as weight-loss drugs. Buy, I said, despite the huge run-up in the shares, because new trials and analysis of existing data were pointing to expanded uses for the drugs. Today, Novo Nordic announced exactly the kind of news that I had talked about.
On Wednesday the Food and Drug Administration approved Mounjaro from Lilly, as an obesity drug, after clinical trials showed that patients lost an average of 18% of their body weight. The drug will be marketed as Zepbound in the obesity market. This puts Lilly into direct competition with the wildly popular Wegovy weight-loss drug from Novo Nordisk (NVO)
