Shares of Viking Therapeutics (VKTX) and Structure Therapeutics (GPCR, Financial) experienced notable gains on Monday, following Pfizer's (PFE) announcement to cease the development of danuglipron, a drug under investigation for weight management. The decision comes after liver toxicity concerns emerged in trials, despite meeting various pharmacokinetic benchmarks in dose-optimization studies.
Although Pfizer's overall liver enzyme elevation rates were comparable to other drugs in the same class, a single case of potential drug-induced liver injury prompted the halt. As Pfizer pivots to focus on other metabolic disease treatments, Morgan Stanley foresees minimal impact on Pfizer's stock, maintaining an Equal Weight rating with a $31 price target. Pfizer's shares, bolstered by a high dividend yield, saw slight gains to $22.17 on the news.
Meanwhile, the cessation of danuglipron development is viewed as beneficial for Viking and Structure by JPMorgan, as it positions them favorably in the competitive landscape of GLP-1 receptor agonists. Viking's stock rose approximately 10% to $24.43, while Structure's shares increased by nearly 11% to $17.77. This shift enhances the attractiveness of Viking as a potential partner and advances Structure's market entry prospects as a second small molecule oral offering.
As competitors like Novo Nordisk (NVO) and Eli Lilly (LLY) with popular medications such as Ozempic, Wegovy, and Mounjaro continue to dominate the market, the recent developments mark a potentially promising opportunity for Viking and Structure in capturing market share.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Structure Therapeutics Inc (GPCR, Financial) is $81.42 with a high estimate of $118.00 and a low estimate of $50.00. The average target implies an upside of 358.04% from the current price of $17.78. More detailed estimate data can be found on the Structure Therapeutics Inc (GPCR) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, Structure Therapeutics Inc's (GPCR, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
