Viking Therapeutics ((VKTX)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Viking Therapeutics’ recent earnings call painted a mixed picture, balancing significant clinical advancements with notable financial challenges. While the company showcased strong progress in its clinical pipeline and maintained a robust cash position, increased net losses and rising expenditures highlighted the financial hurdles it faces. Overall, the call reflected a balanced perspective of achievements and operational costs.
Advancement of VK2735 into Phase III
Viking Therapeutics announced a major milestone with the initiation of the VANQUISH Phase III registration program for VK2735. This development targets obesity and type 2 diabetes, marking a significant step forward in their clinical pipeline. The advancement into Phase III underscores the company’s commitment to addressing these prevalent health issues.
Completion of Enrollment for Phase II Oral Trial
The company successfully completed enrollment in a Phase II trial for the oral formulation of VK2735. This rapid enrollment highlights the strong demand for new weight loss therapies, showcasing the potential impact of VK2735 in the market.
Strong Cash Position
Viking Therapeutics reported a solid financial standing with $808 million in cash, cash equivalents, and short-term investments. This strong cash position provides a substantial financial runway to support ongoing clinical trials and development programs, ensuring the company can continue its innovative work.
Positive Phase II Results for VK2735
The VENTURE Phase II study for VK2735 yielded promising results, achieving its primary and secondary endpoints. The study demonstrated statistically significant weight loss of up to 14.7% and a good safety profile, reinforcing the potential efficacy and safety of VK2735.
Progress in Amylin Receptor Program
Viking Therapeutics made notable progress with its novel amylin receptor agonist program. The company is on track to file an Investigational New Drug (IND) application by the fourth quarter, supporting further diversification of its pipeline and enhancing its therapeutic offerings.
Increased Net Loss
The company reported a net loss of $65.6 million in Q2 2025, a significant increase from $22.3 million in Q2 2024. This rise in net loss is primarily attributed to higher research and development (R&D) and general administrative expenses, reflecting the company’s investment in its clinical programs.
Rising Research and Development Expenses
Research and development expenses surged to $60.2 million in Q2 2025 from $23.8 million in Q2 2024. This increase is indicative of the heightened clinical study and manufacturing costs associated with advancing the company’s pipeline.
Decreased Cash Reserves
Despite maintaining a strong cash position, Viking Therapeutics experienced a decrease in cash reserves from $903 million at the end of 2024 to $808 million in mid-2025. This reduction highlights the substantial cash burn as the company invests heavily in its clinical advancements.
Forward-Looking Guidance
Looking ahead, Viking Therapeutics provided detailed guidance on its clinical development activities and financial performance. The company is advancing its VK2735 program with the initiation of the VANQUISH Phase III study and has completed enrollment in a Phase II trial for the oral tablet. The Phase II VENTURE study showed promising weight loss results, with VK2735 demonstrating safety and tolerability. Additionally, Viking is progressing its amylin receptor agonist program, aiming to file an IND by Q4 2025. Financially, the company anticipates continued investment in R&D and administrative expenses as it supports ongoing clinical advancements.
In summary, Viking Therapeutics’ earnings call highlighted a balanced narrative of clinical progress and financial challenges. While the company is making significant strides in its clinical pipeline, it faces increased net losses and rising expenditures. Nevertheless, with a strong cash position and promising clinical results, Viking Therapeutics remains well-positioned to continue its advancements in the therapeutic landscape.