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Viking Therapeutics (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
Clinical Trials
Phase 3 studies for VK2735 have begun, bringing Viking one step closer to market.
Financial Strength
Viking ended the quarter financially strong with $808 million in cash.
Product Development
Additional VK2735 programs, including an oral formulation and monthly dosing study, are progressing as planned, indicating a robust pipeline.
Negative Factors
Earnings Performance
The EPS discrepancy is due to higher than expected R&D expenses.
R&D Expenses
Viking's R&D expenses increased by 152% YoY, mainly due to increased spending for clinical trials and manufacturing.
Stock Performance
Weakness in shares is attributed to the company's increase in R&D spend, due to increased clinical trial and manufacturing costs.

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

Viking Therapeutics Business Overview & Revenue Model

Company DescriptionViking Therapeutics, Inc. is a biopharmaceutical company focused on the development of novel therapies for metabolic and endocrine disorders. The company is engaged in research and development activities aimed at advancing its portfolio of drug candidates, which target conditions such as liver disease, muscle wasting, and other metabolic disorders. Viking Therapeutics' strategy involves leveraging its expertise in drug discovery and development to address unmet medical needs with its innovative small molecule therapeutics.
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: 0.00%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant clinical progress and a strong cash position highlighting the positives. However, increased net losses and rising expenditures underscore financial challenges. The call reflects a balanced perspective of achievements and operational costs.
Q2-2025 Updates
Positive Updates
Advancement of VK2735 into Phase III
Viking Therapeutics announced the initiation of the VANQUISH Phase III registration program for VK2735, targeting obesity and type 2 diabetes, indicating significant progress in their clinical pipeline.
Completion of Enrollment for Phase II Oral Trial
The company completed enrollment in a Phase II trial for the oral formulation of VK2735, highlighting rapid enrollment and strong demand for new weight loss therapies.
Strong Cash Position
Viking Therapeutics reported $808 million in cash, cash equivalents, and short-term investments, providing a solid financial runway to support ongoing clinical trials and development programs.
Positive Phase II Results for VK2735
The VENTURE Phase II study achieved its primary and secondary endpoints, showing statistically significant weight loss of up to 14.7% and good safety profiles for VK2735.
Progress in Amylin Receptor Program
Viking made strides with its novel amylin receptor agonist program, with an IND filing expected in the fourth quarter, supporting further pipeline diversification.
Negative Updates
Increased Net Loss
Viking reported a net loss of $65.6 million in Q2 2025, an increase from $22.3 million in Q2 2024, primarily due to higher R&D and general administrative expenses.
Rising Research and Development Expenses
R&D expenses rose significantly to $60.2 million in Q2 2025 from $23.8 million in Q2 2024, reflecting increased clinical study and manufacturing costs.
Decreased Cash Reserves
Cash reserves decreased from $903 million at the end of 2024 to $808 million in mid-2025, indicating substantial cash burn despite a strong cash position.
Company Guidance
During the Viking Therapeutics Second Quarter 2025 Financial Results Conference Call, the company provided detailed guidance on their clinical development activities and financial performance. Viking advanced its VK2735 program, initiating the VANQUISH Phase III registration study for the subcutaneous formulation targeting obesity and completed enrollment in a Phase II trial for the oral tablet. The Phase II VENTURE study showed up to 14.7% weight loss, with VK2735 demonstrating safety and tolerability. Viking also progressed its amylin receptor agonist program, aiming to file an IND by Q4 2025. Financially, research and development expenses rose to $60.2 million for Q2 2025, compared to $23.8 million in Q2 2024, reflecting increased clinical and manufacturing activities. General and administrative expenses increased to $14.4 million from $10.3 million in the same period last year. Viking reported a net loss of $65.6 million or $0.58 per share for Q2 2025, with $808 million in cash and investments as of June 30, 2025, supporting their ongoing clinical advancements.

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
Positive
Last Price33.50
Price Trends
50DMA
28.41
Positive
100DMA
27.45
Positive
200DMA
37.55
Negative
Market Momentum
MACD
1.47
Negative
RSI
70.14
Negative
STOCH
70.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VKTX, the sentiment is Positive. The current price of 33.5 is above the 20-day moving average (MA) of 30.16, above the 50-day MA of 28.41, and below the 200-day MA of 37.55, indicating a neutral trend. The MACD of 1.47 indicates Negative momentum. The RSI at 70.14 is Negative, neither overbought nor oversold. The STOCH value of 70.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VKTX.

Viking Therapeutics Risk Analysis

Viking Therapeutics disclosed 74 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 (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$3.89B16.9437.24%22.42%
55
Neutral
$2.50B-103.82%48.04%48.16%
54
Neutral
$2.90B-30.84%-1.20%
53
Neutral
$3.77B-19.99%-23.84%
52
Neutral
$7.61B0.10-63.03%2.08%16.34%0.32%
50
Neutral
$3.77B-106.71%-22.34%
45
Neutral
$3.15B-62.46%-43.10%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VKTX
Viking Therapeutics
33.50
-32.48
-49.23%
ACAD
ACADIA Pharmaceuticals
23.05
3.91
20.43%
APLS
Apellis Pharmaceuticals
20.09
-19.66
-49.46%
SRRK
Scholar Rock Holding
39.11
29.83
321.44%
CRNX
Crinetics Pharmaceuticals
30.41
-23.95
-44.06%
IMVT
Immunovant
18.32
-10.78
-37.04%

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