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VKTX or ENTA: What to Expect from Revenue Growth in 2019

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Growth drivers

In November 2018, Viking Therapeutics (VKTX) issued a press release announcing positive results from its Phase 2 trial evaluating the efficacy of the 1-mg dose alternate day and the 10-mg dose daily of its investigational liver-selective thyroid receptor beta agonist therapy, VK2809, in patients suffering from NAFLD (non-alcoholic fatty liver disease) and high LDL-C (low-density lipoprotein cholesterol). The trial demonstrated a statistically significant decline in liver fat content as well as in LDL-C at the end of 12 weeks for patients treated with VK2809.

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In April 2019, Viking Therapeutics issued a press release announcing more positive data in terms of reduction in liver fat content and LDL-C from a Phase 2 trial evaluating the efficacy of 5mg daily dosing of VK2809 in NALFD and elevated LDL-C patients.

Viking Therapeutics plans to begin its Phase 2b trial evaluating VK2809 in biopsy-confirmed NASH (non-alcoholic steatohepatitis) patients in the second half of 2019. According to the company’s fourth-quarter earnings conference call, the company expects to enroll patients with F1, F2, and F3 fibrosis in this trial and evaluate more than one dose of VK2809 for 12 months of dosing.

According to the company’s fourth-quarter earnings conference call, the selectivity of the investigational VK2809 therapy for liver tissue can be used to evaluate even lower dosages of the drug in the NASH indication, in future clinical studies.

On March 18, Enanta Pharmaceuticals (ENTA) issued a press release announcing the completion of enrollment in Phase 2 trial ARGON-1 to evaluate investigational FXR (Farnesoid X Receptor) Agonist therapy, EDP-305, in the NASH indication.

Wall Street’s projections

Wall Street analysts expect Viking Therapeutics to report no revenues in fiscal 2019 and fiscal 2020. In fiscal 2021 the company is expected to post revenues of $21.90 million.

On the other hand, Wall Street analysts have projected Enanta Pharmaceuticals’ revenues to be $220.13 million, $193.28 million, and $166.89 million for fiscal 2019, fiscal 2020, and fiscal 2021, respectively, which implies a YoY change of 6.54%, -12.20%, and -13.65%, for fiscal 2019, fiscal 2020, and fiscal 2021, respectively.

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