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VKTX Follow Up

|Includes: Viking Therapeutics (VKTX)

I wanted to add a follow up post to my recent article on Viking Therapeutics (NASDAQ:VKTX). In the article I mentioned the illegal use of LGD-4033 (VK5211) by bodybuilders and athletes. The University of Florida starting quarterback in 2015, Will Grier, was the subject of controversy after testing positive for LGD-4033.

There were several pieces written on Grier's experience with LGD-4033, or "Ligandrol." Grier ended up writing his own account of the 2015 season after reading articles which he felt exaggerated his story. He mentioned gaining 20+ pounds while taking Ligandrol, and was undefeated at 6-0, before being suspending for one year.

We don't know the dosages that Grier was taking daily. However, we do know that his strength, lean body mass, and performance were definitely trending up in a big way at the time. In this sense, I use the story as a clue to the efficacy of VK5211. Will the safety and tolerability that was shown in two separate phase one trials, and thus far in a phase two trial hold up? That is yet to be seen.

Still, at a value of $24 million, or $1.20/share, I continue to believe that VKTX is severely undervalued. VK5211 should command $4-6/share in market value itself. We still have to add VK2809, their NAFLD/NASH and hyperlipidemia drug, which I feel is every bit as valuable.

Disclosure: I am/we are long VKTX.