Viking Therapeutics (VKTX, Financial) saw a significant rise in its stock, climbing approximately 21% and reaching a five-month high. This surge was fueled by investor optimism regarding the company's obesity candidate drug, VK2735, alongside better-than-expected financial performance in the third quarter.
According to the latest financial report, Viking improved its liquidity status, posting $930 million in cash, cash equivalents, and short-term investments as of September 30, up from $362 million at the end of 2023. The company reported a per-share loss of $0.22, which was better than the expected loss of $0.24 and an improvement over the same period last year, which saw a $0.23 per-share loss.
Despite these solid financials, the forthcoming data on VK2735 remains the focal point for analysts. VK2735 is a GLP-1/GIP dual receptor agonist, similar to Eli Lilly's (LLY) well-known weight loss drug, Zepbound. Viking is currently awaiting feedback from the FDA regarding the drug's progression to the later development stages. Earlier this year, the VK2735 mid-stage trial, known as VENTURE, delivered positive results. The trial's 13-week data is set to be presented at the Obesity Society's annual meeting in the U.S.
The company plans to share additional Phase 1 data on oral VK2735 during the event scheduled from November 3 to November 6. CEO Brian Lian announced the intention to launch a 13-week Phase 2 obesity study later this year, with further details on the study design forthcoming.
Wall Street has shown a favorable outlook for VK2735's potential to challenge established players like Novo Nordisk (NVO) and Eli Lilly (LLY) in the weight-loss market. In September, J.P. Morgan initiated coverage on Viking with a "Buy" rating, citing the upcoming data as an exciting catalyst. Similarly, Oppenheimer analyst Jay Olson anticipates that Viking will focus on oral Phase 2 and subcutaneous Phase 3 studies after concluding its second-stage meetings later this year, eagerly awaiting more details on their study design.
