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Viking Therapeutics (VKTX)
NASDAQ:VKTX
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Viking Therapeutics (VKTX) AI Stock Analysis

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VKTX

Viking Therapeutics

(NASDAQ:VKTX)

Rating:53Neutral
Price Target:
Viking Therapeutics' overall score reflects the typical profile of an early-stage biotech company. Strengths include a robust balance sheet and promising clinical trial results, but these are offset by high operational losses and cash burn. Technical indicators suggest short-term positive momentum, yet valuation concerns persist due to the absence of profitability. The earnings call provided a positive outlook with significant pipeline advancements.
Positive Factors
Efficacy
The oral VK2735 demonstrated impressive weight loss of up to 12.2% compared to 1.3% for the placebo, showing competitive efficacy across multiple dose levels.
Long-term strategy
Longer term, oral '2735 is seen as a complement to VKTX's competitive subcutaneous '2735, with both efficacy and tolerability data appearing compelling.
Potential partnership
The potential for a large pharma partner to address manufacturing capacity issues at higher doses is promising.
Negative Factors
Adverse effects
Side effects came in higher than expectations as gastrointestinal adverse events like nausea, vomiting, diarrhea, and constipation featured prominently across all tested doses.
Discontinuation rates
Discontinuation rates ranged from 20-38% in a largely dose-dependent manner, with the placebo arm having unusually high 18% discontinuations.
Market reaction
VKTX shares are under pressure following the data release and investor call, partly due to elevated expectations and concerns around the safety/tolerability profile of oral '2735.

Viking Therapeutics (VKTX) vs. SPDR S&P 500 ETF (SPY)

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:Jul 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented both significant advancements in clinical trials and a strong financial position, but these were offset by increased expenses and net loss. The progress in clinical programs, particularly the VK2735 obesity program, is promising, but financial challenges remain.
Q2-2025 Updates
Positive Updates
Advancement of VK2735 into Phase III
Viking Therapeutics has initiated the VANQUISH Phase III registration program for VK2735 in patients with obesity. This includes trials for adults with obesity and those with obesity and type 2 diabetes, targeting enrollment of approximately 4,500 and 1,100 participants, respectively.
Successful Phase II Results for VK2735
The VENTURE Phase II study achieved primary and secondary endpoints with subjects showing statistically significant reductions in mean body weight from baseline, up to 14.7%, demonstrating VK2735's efficacy in weight loss.
Strong Financial Position
Viking Therapeutics holds $808 million in cash, cash equivalents, and short-term investments as of June 30, 2025, providing financial runway to complete Phase III trials for VK2735 and pursue additional programs.
Progress on Amylin Agonist Program
Viking made progress on its novel agonist targeting the amylin receptor, with plans to file an IND in the fourth quarter of 2025.
Negative Updates
Increased Net Loss
Viking reported a net loss of $65.6 million for Q2 2025, compared to a net loss of $22.3 million in Q2 2024, primarily due to increased R&D and G&A expenses.
R&D and G&A Expenses Surge
Research and development expenses increased to $60.2 million in Q2 2025 from $23.8 million in Q2 2024. General and administrative expenses rose to $14.4 million from $10.3 million in the same period.
Cash Position Decrease
Cash, cash equivalents, and short-term investments decreased from $903 million as of December 31, 2024, to $808 million as of June 30, 2025.
Company Guidance
During the Viking Therapeutics Second Quarter 2025 Financial Results Conference Call, Viking provided detailed guidance on its ongoing clinical development activities and financial outcomes. The company highlighted significant progress in its VK2735 obesity program, including the initiation of the VANQUISH Phase III registration program for its subcutaneous formulation and the completion of enrollment in a Phase II trial for the oral formulation. Viking also advanced its novel amylin receptor agonist program, with plans to file an IND in the fourth quarter. Financially, Viking reported increased research and development expenses of $60.2 million for Q2 2025, up from $23.8 million in Q2 2024, and a net loss of $65.6 million or $0.58 per share, compared to a net loss of $22.3 million or $0.20 per share in the prior year period. The company maintained a strong cash position with $808 million in cash, cash equivalents, and short-term investments as of June 30, 2025, to support its ongoing and future clinical programs.

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
35
Negative
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
65
Positive
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
45
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.00
Gross Profit0.00-292.00K-291.00K-296.00K-277.00K
EBITDA-109.52M-100.83M-70.36M-55.39M-42.66M
Net Income-109.96M-85.89M-67.38M-54.00M-36.05M
Balance Sheet
Total Assets908.32M368.49M168.53M210.66M256.50M
Cash, Cash Equivalents and Short-Term Investments902.61M362.08M155.49M202.10M248.39M
Total Debt1.12M1.26M1.56M29.00K359.00K
Total Liabilities28.04M20.07M23.21M8.78M12.16M
Stockholders Equity880.28M348.42M145.32M201.88M244.34M
Cash Flow
Free Cash Flow-87.79M-73.38M-48.40M-47.59M-21.78M
Operating Cash Flow-87.79M-73.38M-48.40M-47.59M-21.78M
Investing Cash Flow-553.37M-179.09M54.75M37.96M41.57M
Financing Cash Flow612.46M271.38M4.16M6.88M950.00K

Viking Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price26.53
Price Trends
50DMA
31.21
Negative
100DMA
29.02
Negative
200DMA
32.57
Negative
Market Momentum
MACD
-1.83
Positive
RSI
39.45
Neutral
STOCH
64.56
Neutral
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 26.53 is below the 20-day moving average (MA) of 31.54, below the 50-day MA of 31.21, and below the 200-day MA of 32.57, indicating a bearish trend. The MACD of -1.83 indicates Positive momentum. The RSI at 39.45 is Neutral, neither overbought nor oversold. The STOCH value of 64.56 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$4.33B19.3333.18%14.41%627.78%
58
Neutral
$3.56B-108.49%20.02%33.45%
53
Neutral
$2.98B-19.99%-63.73%
52
Neutral
$3.14B-36.94%-9.10%
51
Neutral
$7.91B-0.36-41.71%2.23%23.45%-1.86%
50
Neutral
$3.18B-172.08%-29.50%
45
Neutral
$2.63B-77.58%-48.38%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VKTX
Viking Therapeutics
26.53
-27.60
-50.99%
ACAD
ACADIA Pharmaceuticals
25.50
9.43
58.68%
APLS
Apellis Pharmaceuticals
28.65
-12.40
-30.21%
SRRK
Scholar Rock Holding
32.44
24.41
303.99%
CRNX
Crinetics Pharmaceuticals
34.25
-16.14
-32.03%
IMVT
Immunovant
16.12
-17.91
-52.63%

Viking Therapeutics Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Viking Therapeutics’ Promising Results for Obesity Treatment
Positive
Nov 4, 2024

Viking Therapeutics has presented promising data from its VK2735 obesity program at ObesityWeek® 2024, showcasing up to 8.2% weight loss from baseline with an oral formulation over 28 days. The treatment demonstrated strong tolerability, with mild GI-related side effects, and the potential for longer-term weight loss. These findings are significant for those exploring innovative solutions in metabolic disorder treatments, with both oral and subcutaneous forms of VK2735 showing durable effects.

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.Date of analysis: Apr 30, 2025