What's the hottest biotech stock on the market right now? If we limit the list only to those with market caps of at least $500 million, it's Viking Therapeutics (VKTX 7.92%). So far in 2024, Viking's shares have skyrocketed over 270% (and were up even higher at points).

Is it too late for investors to jump aboard the Viking bandwagon? I don't think so. Here are five things you need to know if you buy Viking Therapeutics stock today.

1. Its obesity drug could be a blockbuster

Viking's impressive year-to-date stock performance is due to excitement about the prospects of its experimental drug VK2735. In February, the company reported overwhelmingly positive top-line results from the phase 2 Venture clinical trial evaluating the dual GLP-1/GIP receptor agonist in patients with obesity.

Patients receiving VK2735 experienced up to 13.1% placebo-adjusted mean weight loss after 13 weeks of treatment. This level of weight loss was achieved faster than Novo Nordisk's Ozempic and Wegovy in their clinical trials. Viking CEO Brian Lian said that the data suggested that additional weight loss might be achieved with a longer treatment period.

If approved, VK2735 would almost certainly become a blockbuster. William Blair analyst Andy Hsieh projects the drug could reach peak annual sales of around $14.4 billion in the U.S. with another $7.2 billion in sales in Europe.

2. Viking has another potentially huge winner in its pipeline

Unlike many clinical-stage biotechs, Viking isn't a one-trick pony. The company has another potentially huge winner in its pipeline in addition to VK2735.

Viking is evaluating VK2809 in a phase 2b study for treating nonalcoholic steatohepatitis (NASH), which is also known as metabolic dysfunction-associated steatohepatitis (MASH). Last year, the biotech reported encouraging interim results from the study, showing that VK2809 achieved statistically significant reduction in liver fat.

NASH presents a huge potential market. It's a top cause of liver-related deaths and a major financial burden on healthcare systems across the world. Only one therapy has been approved in the U.S. for treating it: Madrigal Pharmaceuticals' Rezdiffra won approval from the U.S. Food and Drug Administration (FDA) earlier this month.

3. The biotech has an under-the-radar program too

Viking isn't a two-trick pony, either. The biotech's VK0214 has largely flown under the radar, overshadowed by VK2735 and VK2809.

Like VK2809, VK0214 is a thyroid receptor-beta agonist. Viking is currently evaluating the experimental drug in a phase 1b clinical study targeting the rare genetic disorder X-linked adrenoleukodystrophy (X-ALD).

4. Cash shouldn't be an issue anytime soon

Clinical-stage biotechs must closely watch their cash burn. Some could be forced to raise cash through public stock offerings at inopportune times. The good news for Viking is that cash shouldn't be an issue for a while.

Viking ended 2023 with a cash position totaling $362 million. The company also took advantage of the recent surge in its share price to conduct a public offering that generated gross proceeds of around $632.5 million.

5. Viking should be a top acquisition target

Several big drugmakers have their eyes on the obesity and NASH markets. However, some of them don't have strong programs in either indication. Viking, therefore, should be a top acquisition target.

There's no guarantee that Viking will be acquired. However, I suspect the company will find itself in the crosshairs of one or more large biopharmaceutical companies within the next year or two.