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Viking Therapeutics (VKTX)
NASDAQ:VKTX
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Viking Therapeutics
(NASDAQ:VKTX)
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Rating:52Neutral
Price Target:
$32.00
▲(0.76% Upside)
Overall score reflects a solid funding/backing profile and encouraging clinical progress from the latest earnings call, partially offset by pre-revenue status with accelerating losses/cash burn and bearish near-term technical momentum.
Positive Factors
Balance sheet strength and liquidity
Substantial cash reserves and minimal debt provide durable funding flexibility to advance registrational trials without immediate financing. This reduces near-term execution risk, supports trial timelines and partnering leverage, and lowers the probability of forced program cuts or urgent dilutive raises.
Clinical de-risking via Phase II success
Successful Phase II results materially de-risk the lead VK2735 program by demonstrating efficacy and tolerability signals. This increases the likelihood that Phase III can produce registrational data, strengthens discussions with partners/regulators, and enhances long-term commercial prospects if replicated.
Differentiated multi-formulation product profile
A dual GLP-1/GIP agent available as both oral and subcutaneous formulations offers structural commercial advantages: broader patient access, flexible maintenance dosing, and differentiation versus single-format competitors, supporting sustained adoption and pricing optionality if approved.
Negative Factors
Pre-revenue status with widening losses
Remaining entirely pre-revenue while R&D-driven losses accelerate creates persistent funding dependency. Over time this pressures strategic choices, may force prioritization across programs, and increases susceptibility to dilution or unfavorable deal terms absent successful commercialization or partnering.
Heavy and deteriorating cash burn
Deepening negative operating and free cash flow reflects escalating trial spend and program expansion. Even with current cash, sustained high burn or trial delays would meaningfully deplete reserves, making future external financing, partnerships, or program trade-offs likely and increasing execution risk.
Negative returns and dilution risk despite equity growth
Rising equity paired with persistently negative ROE signals that invested capital has not generated returns, reflecting ongoing losses. Over the medium term this raises the likelihood management will pursue equity raises or licensing deals, which can dilute existing shareholders and affect long-term return prospects.
Viking Therapeutics (VKTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.62B
Dividend YieldN/A
Average Volume (3M)2.51M
Price to Earnings (P/E)―
Beta (1Y)1.76
Revenue GrowthN/A
EPS Growth-126.16%
CountryUS
Employees45
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.81
Shares Outstanding113,036,350
10 Day Avg. Volume2,856,747
30 Day Avg. Volume2,508,551
Financial Highlights & Ratios
PEG Ratio-3.63
Price to Book (P/B)4.98
Price to Sales (P/S)0.00
P/FCF Ratio-49.98
Enterprise Value/Market Cap0.79
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/Ebitda-10.39
Forecast
1Y Price Target
$97.00Price Target Upside205.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Viking Therapeutics Business Overview & Revenue Model
Company DescriptionViking Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development of novel therapies for metabolic and endocrine disorders. The company's lead drug candidate is VK2809, an orally available tissue and receptor-subtype selective agonist of the thyroid hormone receptor beta (TRß), which is in Phase IIb clinical trials to treat patients with biopsy-confirmed non-alcoholic steatohepatitis, as well as NAFLD. It also develops VK5211, an orally available non-steroidal selective androgen receptor modulator that is in Phase II clinical trials for the treatment of patients recovering from non-elective hip fracture surgery; VK0612, an orally available Phase IIb-ready drug candidate for type 2 diabetes; and VK0214, an orally available tissue and receptor-subtype selective agonist of the TRß for X-linked adrenoleukodystrophy. The company was incorporated in 2012 and is headquartered in San Diego, California.
How the Company Makes MoneyViking Therapeutics makes money primarily through the development and potential commercialization of its drug candidates. The company generates revenue through strategic partnerships, collaborations, and licensing agreements with other pharmaceutical companies. These partnerships may involve upfront payments, milestone payments, and royalties based on the success and commercialization of its drug candidates. Currently, Viking Therapeutics does not have commercialized products on the market, so its revenue largely depends on funding from investors and partnerships with other companies in the biopharmaceutical industry.
Viking Therapeutics Earnings Call Summary
Earnings Call Date:Oct 22, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in clinical trials for obesity treatments, with positive Phase II results and the initiation of Phase III trials. However, the financial report showed increased losses and decreased cash reserves.Q3-2025 Updates
Positive Updates
Positive Phase II Results for VK2735
The Phase II VENTURE-Oral Dosing Trial successfully achieved its primary and secondary endpoints with patients receiving VK2735 demonstrating statistically significant reductions in body weight compared with placebo. Up to 97% of subjects achieved at least 5% weight loss.
Initiation of Phase III VANQUISH Registration Program
Viking initiated the Phase III VANQUISH Registration program, including trials in patients with obesity and patients with obesity and type 2 diabetes. Enrollment for these trials is proceeding well and is ahead of schedule.
Strong Financial Position
Viking holds cash, cash equivalents, and short-term investments of $715 million as of the end of the third quarter, which allows the company to complete its planned Phase III obesity trials for VK2735.
Negative Updates
Increased Net Loss
Viking reported a net loss of $90.8 million for the third quarter of 2025, compared to a net loss of $24.9 million for the same period in 2024. The increase was primarily due to higher research and development expenses.
Decreased Cash Reserves
Cash reserves decreased from $903 million as of December 31, 2024, to $715 million as of September 30, 2025, due to increased spending on clinical studies and other operational activities.
Company Guidance
During the Viking Therapeutics Third Quarter 2025 Financial Results Conference Call, the company provided guidance on its development activities and financial performance. Viking Therapeutics reported a net loss of $90.8 million for the third quarter of 2025, an increase from the $24.9 million loss reported in the same period in 2024, primarily due to a rise in research and development expenses, which reached $90 million. The company highlighted the progress of its VK2735 program, including the successful achievement of primary and secondary endpoints in the Phase II VENTURE-Oral Dosing Trial, with statistically significant reductions in body weight observed. Viking also announced the initiation of a clinical study to evaluate maintenance dosing strategies for VK2735, which includes monthly subcutaneous, daily oral, and weekly oral dosing options. The company's cash reserves stood at $715 million as of September 30, 2025, providing sufficient financial resources to complete planned Phase III trials and support further program development.Viking Therapeutics Financial Statement Overview
Summary
Viking Therapeutics has a strong balance sheet with low leverage, but significant operational losses and negative cash flow due to high R&D expenses. The company is in a pre-revenue stage, typical for biotech firms, and relies heavily on equity financing.Income Statement
Viking Therapeutics shows consistent operational losses with no revenue generation, as expected in early-stage biotech companies. The continuous increase in EBIT and net losses over the years reflects high R&D and operational expenses without offsetting revenue. The absence of revenue growth remains a significant concern.Balance Sheet
The company maintains a strong equity position with minimal debt, evidenced by a high equity ratio and low debt-to-equity ratio. However, the decreasing cash reserves, despite high stockholder equity, indicate potential future liquidity challenges if revenue generation doesn't commence.Cash Flow
Operating cash flows are negative, reflecting the company's investment in R&D activities. The high financing cash flow in recent years suggests dependence on external funding. While free cash flow is negative, the company has managed substantial financing inflows, indicating investor confidence.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | 0.00 | 0.00 | -292.00K | 0.00 | 0.00 | 0.00 |
| EBITDA | -274.39M | -150.57M | -100.53M | -70.06M | -55.39M | -39.11M |
| Net Income | -237.39M | -109.96M | -85.89M | -68.87M | -54.99M | -39.49M |
Balance Sheet | ||||||
| Total Assets | 739.41M | 908.32M | 368.49M | 168.53M | 210.66M | 256.50M |
| Cash, Cash Equivalents and Short-Term Investments | 714.57M | 902.61M | 362.08M | 155.49M | 202.10M | 248.39M |
| Total Debt | 755.00K | 1.12M | 1.26M | 1.56M | 29.00K | 359.00K |
| Total Liabilities | 26.39M | 28.04M | 20.07M | 23.21M | 8.78M | 12.16M |
| Stockholders Equity | 713.03M | 880.28M | 348.42M | 145.32M | 201.88M | 244.34M |
Cash Flow | ||||||
| Free Cash Flow | -224.58M | -87.79M | -73.38M | -48.40M | -47.59M | -21.78M |
| Operating Cash Flow | -224.58M | -87.79M | -73.38M | -48.40M | -47.59M | -21.78M |
| Investing Cash Flow | 272.36M | -553.37M | -179.09M | 54.75M | 37.96M | 41.57M |
| Financing Cash Flow | 2.34M | 612.46M | 271.38M | 4.16M | 6.88M | 950.00K |
Viking Therapeutics Technical Analysis
Negative
31.76
Price Trends
36.05
Negative
32.44
Negative
30.56
Positive
Market Momentum
-1.11
Positive
35.33
Neutral
7.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VKTX, the sentiment is Negative. The current price of 31.76 is below the 20-day moving average (MA) of 34.67, below the 50-day MA of 36.05, and above the 200-day MA of 30.56, indicating a neutral trend. The MACD of -1.11 indicates Positive momentum. The RSI at 35.33 is Neutral, neither overbought nor oversold. The STOCH value of 7.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VKTX.
Viking Therapeutics Risk Analysis
Viking Therapeutics disclosed 77 risk factors in its most recent earnings report. Viking Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Viking Therapeutics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $3.26B | -10.61 | -45.14% | ― | ― | -38.30% | |
56 Neutral | $5.24B | -9.12 | -95.93% | ― | ― | -27.70% | |
55 Neutral | $3.90B | -16.01 | -39.94% | ― | ― | ― | |
52 Neutral | $3.62B | -14.99 | -29.23% | ― | ― | -126.16% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $4.30B | ― | -218.04% | ― | ― | -31.71% | |
46 Neutral | $2.17B | -4.10 | -325.76% | ― | 20.63% | 8.09% |
* Healthcare Sector Average
VKTX
Viking Therapeutics
31.76
-2.17
-6.40%
RARE
Ultragenyx Pharmaceutical
24.37
-15.65
-39.11%
XENE
Xenon
41.23
1.58
3.98%
SRRK
Scholar Rock Holding
43.56
2.03
4.89%
IMVT
Immunovant
25.81
2.93
12.81%
NAMS
NewAmsterdam Pharma Company
32.69
9.02
38.11%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.