A multibillion-dollar deal in the healthcare industry helped lift the stock of a company, Viking Therapeutics (NASDAQ: VKTX), not directly involved in the transaction. The deal centered around a hot class of drugs Viking is also developing. As a result, according to data compiled by S&P Global Market Intelligence, Viking's share price was up by a whopping 39% week to date as of Friday before market open.

The week kicked off with global pharmaceutical company Roche (OTC: RHHBY) announcing it signed an agreement essentially to acquire clinical-stage biotech Carmot Therapeutics. For its new asset, Roche will make an up-front payment of $2.7 billion to be transacted fully in cash. Current Carmot investors will also be entitled to receive up to an additional $400 million should certain milestones be met.

Carmot is currently developing a drug that targets obesity. This is a white-hot segment of the biotech and pharmaceutical industries, as evidenced by the very strong demand for Danish pharmaceutical company Novo Nordisk's Wegovy (and its related diabetes drug, Ozempic).

Continue reading

Source Fool.com