Two Potential Shares Likely to Increase by 68% to 166% by 2025, as Suggested by Wall Street Experts
The stock market has had a solid year overall, with notable successes for a couple of drugmaker start-ups. Shares of Viking Regenerative Therapeutics (VRTX 4.30%) and Summit Oncology Therapeutics (SOT -0.60%) saw significant gains in 2024, more than doubling in value.
Swift profits often fade away on Wall Street, but stock market analysts predict that these shares will climb even higher in 2025. BTIG analyst Justin Zelin foresees Viking Regenerative Therapeutics' stock reaching $125 per share, a potential increase of approximately 166% within the next 12 months. On the other hand, Wells Fargo analyst Mohit Bansal recently set a $30 target price for Summit Oncology Therapeutics, suggesting a potential 68% increase for the cancer drug developer in the forthcoming year.
1. Viking Regenerative Therapeutics
From the end of 2023 through Dec. 12, 2024, Viking Regenerative Therapeutics' shares skyrocketed by 157%. If the experimental weight loss treatment they're developing continues to flourish in clinical trials, the stock could double again.
Viking Regenerative Therapeutics doesn't currently have any approved drugs, but a candidate they're working on, VK2735, could become a leading weight management drug. It's a dual GLP-1 and GIP receptor agonist, similar to tirzepatide from Eli Lilly.
The Food and Drug Administration (FDA) approved tirzepatide to treat diabetes in 2022 and expanded its approval to include weight management in late 2023. Eli Lilly's drug saw sales escalate to $11 billion during the first nine months of 2024.
Viking Regenerative Therapeutics has been witnessing a surge since mid-stage clinical trial results have suggested that VK2735 could earn a substantial market share among dual GLP-1 and GIP receptor agonists. In November, we saw results from an ascending dose study. Patients given the highest dosage saw a 8.2% decrease in their weight after four weeks, a 6.8% decrease compared to the placebo group.
In March, Viking Regenerative Therapeutics' stock rose substantially when the company revealed early-stage clinical trial results from an oral version of VK2735. Patients receiving the highest dosage saw a 5.3% decrease in their weight after 28 days, a 3.3% decrease compared to the placebo group.
2. Summit Oncology Therapeutics
Summit Oncology Therapeutics might possess a new cancer therapy that aids the immune system in combating tumors. One of the most successful immunotherapies of all time, Keytruda, addresses the programmed death ligand-1 (PD-1) pathway that tumors exploit to inhibit the immune system's attack.
Merck recorded sales of Keytruda that reached $25 billion last year. Summit Oncology Therapeutics has witnessed a surge in stock price by about 583% in 2024 due to the licensing of a drug that appears to outperform Keytruda.
Ivonescimab is a bispecific antibody that inhibits PD-1 and vascular endothelial growth factor (VEGF) simultaneously. In the Harmoni-2 study, lung cancer patients who were newly diagnosed with advanced-stage disease were 49% less likely to deteriorate when treated with ivonescimab compared to patients given Keytruda.
Summit Oncology Therapeutics doesn't own ivonescimab. They licensed the rights from Akeso to develop and market it outside of China. In May, Akeso secured approval to market the drug throughout China as a treatment for second-line lung cancer patients who progressed after their first line of treatment.
The FDA will not approve a new cancer drug for marketing in the U.S. without a large phase 3 trial that enrolls a significant number of North American patients. Investors will not have to wait long to find out if it has a market potential in the U.S. In October, Summit completed enrolling second-line lung cancer patients into the phase 3 Harmoni trial. Given the results seen in China-based trials, the U.S. Harmoni study is widely anticipated to be successful.
More potential gains?
Before you consider investing in either of these stocks, it's crucial to keep in mind that stock market analysts might quietly adjust their price targets downward if things don't go as planned. Recovering from poor investment choices can be challenging for your portfolio.
Viking Regenerative Therapeutics' experimental weight loss drug still needs to conclude a prolonged phase 3 trial before we can determine whether VK2735 can generate sales comparable to tirzepatide. Unfortunately, many sales for the experimental drug are already built into the stock's $5.2 billion market capitalization. The stock could surge higher, but it's advisable for investors who can tolerate high levels of risk.
Expectations for Summit Oncology Therapeutics are even greater than expectations for Viking Regenerative Therapeutics. Its $13.2 billion market cap at recent prices could plummet if long-term overall survival data isn't as compelling as the progression-free survival results ivonescimab has already produced. Analysts are not incorrect in suggesting this stock could rise further, but it presents more risk than most investors can handle.
- Viking Regenerative Therapeutics' impressive growth in 2024, with shares increasing by over 150%, has attracted the attention of investors. If VK2735, their experimental weight loss treatment, succeeds in clinical trials, analysts predict that the stock's value could double again, presenting an excellent opportunity for those interested in investing in the finance sector.
- Summit Oncology Therapeutics' stock price surge of about 583% in 2024 is largely due to the licensing of ivonescimab, a drug that outperforms Keytruda in certain trials. With the U.S. phase 3 trial for ivonescimab underway, investors are hoping for another significant success that could potentially lead to even higher returns, but they should also be aware of the high risk involved in finance when investing in such stocks.
