Eli Lilly (LLY) and Novo Nordisk (NVO) have truly ended up being heat provides over the earlier yr many because of their blockbuster GLP-1 drugs to treat obesity.
Over the in 2014, Lilly and Novo shares are up 72% and 44%, particularly. By market cap, Novo is the most important enterprise in Europe whereas Lilly charges eighth amongst United States companies with a market cap of $900 billion.
Shares of each companies have truly been boosted by encouraging research that reveals broadened indicators previous lowering weight and coping with diabetic points, sending out capitalists on the search for the next giant improvement within the room.
On a present sector of Good Buy or Goodbye (video clip over), RSE Ventures CHIEF EXECUTIVE OFFICER Matt Higgins made the occasion for Viking Therapeutics (VKTX).
“We all know what Eli Lilly and what [Novo Nordisk have] done,” Higgins, that’s bought $VKTX, knowledgeableYahoo Finance “But it’s a massive TAM [total addressable market]. It’s a $150 billion market. And [Viking] is a biotechnology firm … and they are onto something pretty amazing. They are working on two products: One is a shot that you would take once a month, and the other is a pill, which is the holy grail and early studies show that it’s being very well tolerated.”
Higgins isn’t the only one that’s noticed. Viking’s shares are up nearly 250% this yr. At a market cap of $7 billion, its dimension is towered over by Novo Nordisk and Eli Lilly.
Another giant comparability with the pharma titans is that Viking doesn’t but have any kind of income as a consequence of the truth that its therapies are nonetheless in development. And since June, the enterprise actually didn’t even have 30 everlasting staff; built-in, Novo and Lilly make the most of better than 100,000 people.
Even with the rise in Viking provide this yr, Higgins believes shares are nonetheless eye-catching, with 2 potential drivers shifting ahead.
One is the chance of being gotten: He ball parks a takeout price at $15 billion, or roughly twin as we speak’s price.
The varied different is a gathering in November, at which Viking is guessed to improve its searchings for round its GLP-1s.
“I don’t think it’s priced in at all,” Higgins acknowledged.
Julie Hyman is the co-host of Market Domination onYahoo Finance You can uncover her on social media websites @juleshyman.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
