Viking Therapeutics’ stock initially surged on hopes for its obesity drug VK2735 but stumbled in November due to concerns over manufacturing costs. Despite a steep decline, the sell-off might present a buying opportunity as biopharma stocks often rally after sharp drops. Viking is testing multiple drugs, with VK2735 in advanced stages.

The company’s stock has been volatile as VK2735 undergoes phase 3 testing, prompting premature market reactions. Similar situations have played out with other biopharma stocks like Regeneron and Exelixis, showing that recoveries are possible after setbacks. Patient investors may see potential in Viking’s developmental pipeline and long-term growth prospects.

Investors should consider the potential for Viking Therapeutics to bounce back in the next two years, especially as VK2735 progresses through testing phases. Market reactions often overshoot, creating opportunities for patient investors to capitalize on the company’s potential success in the weight-loss drug market. Despite current challenges, Viking Therapeutics may see significant gains in the future.

Read more at Yahoo Finance: After Falling 68%, Where Will This Weight-Loss Drug Stock Be in 2 Years? History Shows Massive Gains Ahead.