I think I've found one of the most mispriced stocks right now in the market - VKTX. This is a 3bn pharma company. Their lotto ticket is the oral weight loss pill VK2735. 

1. High short interest 

The short interest is 27% and days to cover is entire week. This is like lighting a fire near a barrel of gas. If WSB really gets a hold of this stock as it has some of the other names in the past, it will become one that we look back on. 

2. Superior oral weight loss drug

It took 13 weeks for VK2735 to produce the same results as what took for Eli Lilly's drug Orfoglipron to do in 70ish weeks. That's insane when you think about it. Lilly's trial was a phase 3, whereas VKTX's was a phase 2 trial. VKTX will be moving to phase 3 next and they'll showcase even further weight loss with a full trial.

We don't have data (not released) from LLY of what the weight loss % was for their drug at 13 weeks. I suspect they wouldn't want to share that anyway - it wouldnt help them, and might only hurt them. Just putting that out there so that we are doing apples to apples comparisons. 


3. Massively underestimated and underrated

Eli Lilly today gained 30bn market cap after announcing they will proceed to seek approval for orfoglipron. That is 10x the market cap of VKTX. That's if VKTX announced they are ready to seek approval of their drug, they would shoot up from $25 to $250 per share price. 

Many top analysts have them at $80-120 price target. Raymond James, Jeffries, Oppenheimer all have $120+ price targets with BUY ratings. Morgan Stanley has them at $102. 

4. Side effects misunderstood / overreaction 

The reason they dropped recently is because there was a high rate of drop outs in the phase 2 trial. However, if you remember, this was a 13 week trial with fast titration. As a pharmacist, this class of medication is notorious for nausea if not titrated slowly. Their next phase of trial they will adjust these parameters and do a longer study. 

5. Buyout target

There are companies out there who want a piece of the pie of weight loss drugs because we are starting to realize that weight loss solves a whole host of other problems - liver, kidney, cardiovascular, and so on. Every day there is a new study published on these drugs that makes LLY jump or NVO jump. 

VKTX is considered one of the top buyout targets at the moment in the pharma space. They can easily clear a share price of $100 at least if announced a buyout. 

Top analysts from JP Morgan and Goldman sachs and others project the glp market to be a 50-100billion market by 2030. Even a third player to LLY and NVO can enjoy a big share of the pie without even having to outcompete them. 

6. With vktx oral pill, you can potentially achieve a rapid weight loss on the high doses and then switch to a lower maintenance dose, without even requiring injections. You can't do that with the competitor pills.

I would probably go shares for this play. It has the potential for a 5x within the next year. I bought calls myself gambling on a buyout. 


This is how much I put in for now because it’s what I have. 

VKTX – Short Interest Sky High, Fundamentals Even Higher