We added to our position in Viking Therapeutics last week as the summer of Bio Tech M&A moves forward!

 

Lipid and metabolic disorders are a broad group of conditions that affect how the body processes fats (lipids) and energy. 

Here's a breakdown of the types of diseases in this category and Viking Therapeutics' role in treating them:

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🧬 Common Lipid and Metabolic Disorders

These can be genetic or acquired and often overlap with obesity, diabetes, and cardiovascular disease:

1. Lipid Disorders

• Hypercholesterolemia (high LDL/"bad" cholesterol)

• Hypertriglyceridemia (high triglyceride levels)

• Familial hypercholesterolemia

• Mixed dyslipidemia (elevated LDL + triglycerides, low HDL)

2. Metabolic Disorders

• Non-alcoholic fatty liver disease (NAFLD) and its more severe form:

  • Non-alcoholic steatohepatitis (NASH)

• Type 2 diabetes mellitus

• Obesity and metabolic syndrome

• Gaucher disease, Fabry disease, Pompe disease (rare, inherited)

• Mitochondrial disorders (affecting cellular energy production)

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🧪 Viking Therapeutics' Focus and Lead Assets

Viking is primarily focused on metabolic and endocrine diseases, with particular emphasis on:

✅ 1. VK2809 – Lead candidate for NASH and lipid disorders

• A thyroid hormone receptor beta (TRβ) agonist.

• Designed to reduce liver fat, improve lipid profiles, and treat NASH.

• In Phase 2b clinical trials (as of mid-2024) with promising results.

• Shown significant reductions in liver fat and improvements in LDL/triglycerides.

✅ 2. VK2735 – GLP-1 receptor agonist for obesity and metabolic disease

• Part of the GLP-1 class, like semaglutide (Ozempic/Wegovy).

• Targets weight loss and possibly type 2 diabetes.

• Both injectable and oral formulations are in development.

• Competing in the high-growth obesity/diabetes market.

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📊 Does Viking Have a Lead?

Viking is not yet a commercial-stage company, but:

• VK2809 is a strong contender in the NASH race, potentially rivaling Madrigal's resmetirom (Rezdiffra), which got FDA approval in 2024.

• VK2735 is part of the ultra-competitive GLP-1 weight loss/diabetes market, where Novo Nordisk and Eli Lilly currently dominate.

So while Viking is not a market leader yet, it has:

• Best-in-class potential in NASH with VK2809.

• A promising pipeline that could disrupt obesity treatment with VK2735.

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As Viking Therapeutics (VKTX) advances its high-potential assets in NASH and obesity, it becomes an increasingly attractive acquisition target, especially in the context of:

• The massive commercial potential of NASH (non-alcoholic steatohepatitis) and obesity markets

• Its de-risked clinical programs, with strong Phase 2 data and growing investor interest

• The patent-protected, next-generation nature of its GLP-1 and thyroid hormone receptor beta (THR-β) drug candidates

Here’s a breakdown of potential suitors and why they might be interested:

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🧬 Top Potential Acquirers of Viking Therapeutics

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🔹 1. Pfizer (PFE)

Why?

• Pfizer has struggled post-COVID to find new growth drivers.

• It lacks a strong obesity or NASH program after setbacks like the discontinuation of danuglipron (oral GLP-1) due to side effects.

• Viking's VK2735 (GLP-1 agonist, injectable and oral) could revive Pfizer's ambitions in metabolic disease.

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🔹 2. Eli Lilly (LLY)

Why?

• Already dominating the obesity/diabetes market with Mounjaro (tirzepatide) and Zepbound.

• A strategic acquisition of Viking could:

  • Lock in next-gen GLP-1 competition.

  • Add a THR-β asset (VK2809) to expand into NASH—a logical adjaceny to obesity and T2D.

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🔹 3. Novo Nordisk (NVO)

Why?

• The world leader in GLP-1 therapies (Ozempic, Wegovy).

• Could acquire Viking to:

  • Defend its dominance against oral GLP-1 competition.

  • Enter the NASH market via VK2809, complementing obesity treatment.

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🔹 4. Madrigal Pharmaceuticals (MDGL)

Why?

• Approved Rezdiffra (resmetirom) for NASH, first of its class.

• Viking’s VK2809 is a direct TRβ rival with differentiated liver targeting.

• A defensive or complementary acquisition would eliminate its main clinical-stage competitor.

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🔹 5. Roche / Genentech or Merck (MRK)

Why?

• These Big Pharma players have limited or no current exposure in obesity and NASH.

• Both are actively seeking pipeline expansion via acquisition.

• Viking’s pipeline offers a clean, focused portfolio with first-in-class and best-in-class potential.

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🧪 Summary: Why Viking is Attractive

Feature	Strategic Value
VK2809 (THR-β)	Potentially best-in-class NASH therapy
VK2735 (GLP-1)	Oral and injectable forms offer flexibility
Market Tailwinds	Obesity + NASH markets projected to hit $100B+
Clean Cap Table	No legacy liabilities or marketed products to manage
Small Cap	Easier acquisition (<$7B market cap) vs. peers

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Pfizer is actively using artificial intelligence (AI) and machine learning (ML) to enhance its drug development processes.

  

Pfizer has integrated AI in various stages of drug discovery and development to accelerate research and improve precision.

One of the significant AI-driven initiatives by Pfizer includes a collaboration with the Research Center for Molecular Medicine of the Austrian Academy of Sciences (CeMM). This partnership has resulted in an AI and ML platform that measures how small molecules bind to human proteins, which helps identify new drug candidates more efficiently. The platform has created a catalog of interactions that can be used for further drug development efforts​ (Fierce Biotech)​.

Additionally, Pfizer has extended its collaboration with CytoReason, an Israeli startup specializing in AI-powered disease models. This partnership, renewed with a $110 million investment, aims to develop high-resolution models of various diseases to support Pfizer's research across over 20 disease areas. CytoReason’s technology helps simulate individual diseases and identify effective treatments, potentially speeding up clinical trials and reducing costs​ (Fierce Biotech)​​​.

Pfizer is also leveraging AI to improve patient stratification and target prioritization in therapeutic areas such as oncology, internal medicine, and immunology. By analyzing large datasets, including biomarker and next-generation sequencing data, Pfizer aims to better understand disease subtypes and enhance the design and success rates of its clinical trials​ (BioSpace)​.

Current Stock Performance and Forecasts

1. Stock Ratings and Price Targets:

   • The consensus rating for Pfizer (PFE) is "Buy," with an average price target of around $35.86, suggesting a potential upside of about 29% from its current price​ (MarketBeat)​. However, other sources suggest a slightly higher average price target of $40.54​ (Benzinga)​.
   • Specific targets from analysts vary, with some setting a high target of $50 and a low of $27​ (MarketBeat)​​ (Benzinga)​. (Note: Today's price is closer to $13)

2. Challenges:

   • Pfizer's stock price has significantly dropped from its pandemic highs due to declining demand for COVID-19 vaccines and legal challenges related to its vaccine claims​ (Stock Analysis)​.
   • Recent setbacks include a failed gene therapy trial and discontinuation of a weight-loss drug due to side effects, which have contributed to the stock's decline​ (InvestorPlace)​.

Potential Positives

1. Robust Product Pipeline:

   • Despite setbacks, Pfizer's pipeline remains strong with 110 assets in development and plans to add significant revenue through new drugs and acquisitions, such as the $43 billion Seagen deal expected to contribute at least $3 billion annually​ (InvestorPlace)​.

2. Financial Stability:

   • Pfizer maintains substantial liquidity with $44 billion in cash, which provides a buffer against future uncertainties and supports ongoing investments in new product development​ (InvestorPlace)​.
   • The company is focusing on high-potential markets such as obesity, where it aims to introduce new treatments despite previous challenges​ (InvestorPlace)​.

3. Dividends:

   • Pfizer continues to offer an attractive dividend yield of around 5.84%, which is appealing to income-focused investors​ (InvestorPlace)​.

Pfizer is actively using artificial intelligence (AI) and machine learning (ML) to enhance its drug development processes. The company has integrated AI in various stages of drug discovery and development to accelerate research and improve precision.

The largest shareholders of Pfizer include a mix of institutional investors and mutual funds. As of the latest available data, the top shareholders are typically large financial institutions and investment firms. Here are some of the largest shareholders:

1. The Vanguard Group, Inc.
2. BlackRock, Inc.
3. State Street Corporation
4. Wellington Management Group LLP
5. Geode Capital Management, LLC

These entities often hold significant shares due to their extensive portfolios and investment strategies focused on large, stable companies like Pfizer. Specific ownership percentages can fluctuate due to trading activities, so for the most accurate and up-to-date information, checking recent filings with the Securities and Exchange Commission (SEC), such as 13F filings, would be advisable.

Overall, Pfizer’s integration of AI and ML is helping to streamline drug discovery, optimize clinical trials, and develop more effective treatments for various conditions, positioning the company at the forefront of pharmaceutical innovation​ (Pfizer Investor Insights)​​ (Fierce Biotech)​​​.

Promising cancer treatments in it's pipeline coupled with a healthy financial book and future royalties positions Xencor for success!

Quantum computing technology will advance Ai tech exponentially in the coming years, and in fact, "exponentially" may be too small a word!

Ginkgo Bioworks is building out their BioManufacturing Foundry platform which mimics the building of semiconductor foundries of yester year!

 78.63% of #GinkgoBioworks ( $DNA) stock is owned by #Institutional #investors.

Here are some of the major institutional shareholders:

ARK Investment Management LLC owns a significant number of shares in Ginkgo Bioworks Holdings, Inc. (NYSE: DNA). As of the most recent filings, they held 182,192,185 shares during the 3rd quarter of 2023. 

Additionally, in the 4th quarter, their holdings increased to 198,606,619 shares

Equitec Proprietary Markets LLC: Holds 672,488 shares (0.5% of the portfolio). Sumitomo Mitsui Trust Holdings Inc.: Holds 55,865,048 shares (2.595% of the portfolio).

(Note: M. Potter who served as President, Chief Executive Officer, and Chair of the board of Sumitomo Pharma America, and as the Chief Executive Officer of Sumitovant Biopharma, the parent company of five biotechnology companies, was added to the board of Ginkgo BioWorks on April 29th) Salem Investment Counselors Inc.: Holds 4,758,585 shares (0.221% of the portfolio). Vanguard Group Inc.: Holds 132,780,095 shares (6.169% of the portfolio). Lingotto Investment Management LLP: Holds 8,511,301 shares (0.402% of the portfolio). Additionally, during the previous two years, a total of 228 institutional investors and hedge funds held shares of Ginkgo Bioworks.

Some of the most heavily invested institutions include Baillie Gifford & Co., ARK Investment Management LLC, and Nikko Asset Management Americas Inc.. Institutional investors play a significant role in Ginkgo Bioworks’ ownership structure, with a mix of large investment firms and hedge funds holding substantial stakes in the company

Founded in 2008 by five #Scientists from #MIT, Ginkgo Bioworks is headquartered in #Boston. Their mission is to use #Biology to grow better products across diverse markets. They have developed a cell programming platform that enables the growth of biotechnology. Ginkgo’s platform allows for programming cells and designing organisms that behave in pre-defined ways. They work with various industries, from food to fragrance to pharmaceuticals. - - - - - - -

#Ginkgo collaborates with various organizations and companies like:

Pfizer

Pfizer has entered into a multi-target RNA discovery collaboration with Ginkgo Bioworks, cell engineering.

 In this partnership, Pfizer will leverage Ginkgo’s proprietary RNA technology to advance the discovery and development of novel RNA molecules across priority research areas. 

The collaboration is valued at a total of $331 million across three distinct programs, and Ginkgo Bioworks is entitled to potential downstream value in the form of royalties on sales

Ginkgo also collaborates with these partners:

#Motif #FoodWorks: Changing the future of #food. #Bayer: Designing #probiotics for plants. #Allonnia: Enabling bioremediation solutions. #Aldevron: Supporting the #Vaccine #SupplyChain. #Cronos Group: Unlocking potential in #Cannabinoids. #Synlogic: Engineering living #Medicines. #Moderna: Optimizing vaccine processes. #IARPA: Protecting valuable technology. #Robertet: Producing cultured ingredients. And more

Keep in mind the companies that collaborate with Ginkgo Bioworks to advance synthetic biology:

1. OneOne Biosciences

   , a French biotech startup, is developing a comprehensive suite of agricultural microbial solutions. They have partnered with Ginkgo Bioworks to leverage their robust ag biologicals infrastructure, biotechnological expertise, and Strain Optimization Services. The collaboration aims to accelerate OneOne’s research and product development in agricultural microbial solutions, including a novel solution for production and delivery of ag microbials through the OneOne Multiplier™1.

2. Synlogic: collaborates with Ginkgo Bioworks to develop a pipeline of novel “living” medicines based on engineered probiotics. They utilize Ginkgo’s cell programming platform to create innovative treatments.

3. Biogen:

    and Ginkgo Bioworks have announced a gene therapy collaboration. Their goal is to redefine the industry standard for manufacturing recombinant adeno-associated virus (AAV)-based vectors3.

4. Pfizer: Ginkgo Bioworks has a collaboration with Pfizer to advance the discovery and development of novel RNA molecules across priority research areas using Ginkgo’s proprietary RNA technology4.

Ginkgo has also acquired competitors like Zymergen etc, and have a serious "first mover" advantage in the field as they continue to build a "moat" around their business that few if any, will be able to copykey points:

1. Sustainability: Ginkgo’s platform enables leading pharmaceutical, food, and agriculture companies to develop more sustainable solutions. As the world increasingly looks to synthetic biology for emissions reduction and supply chain resilience, Ginkgo’s role becomes more critical.

2. Biosecurity:

   Ginkgo’s biosecurity business unit, Concentric, is working on building infrastructure to monitor biological threats. They collaborate with organizations like the Centers for Disease Control and Prevention (CDC) to enhance pathogen monitoring and develop tools to prevent misuse of engineered biology.

3. Employee Ownership and Care: Ginkgo is committed to thoughtful deployment of its platform. They’ve established a Caring Committee to assess potential impacts of their activities and integrate a Cost, Caring, and Risk Assessment (CCRA) process

4. How to invest in Robots and Robotics going forward, through the back door method!

5. "The rapid and complete resolution of aggressive MSS colorectal cancer tumors observed in this study is unprecedented in the field" says the author Dr. Kasi