Viking Therapeutics, Inc. (VKTX, Financial) has carried forward its robust performance from 2024 into the first quarter of 2025, as the company continues to make significant strides in its clinical trials. The pharmaceutical firm is preparing to initiate Phase 3 trials for VK2735's subcutaneous formulation, with plans to commence these trials before the quarter concludes.
Earlier this quarter, Viking not only launched the Phase 2 VENTURE-Oral Dosing trial for the tablet form of VK2735 but also swiftly completed the trial's participant enrollment. This rapid enrollment highlights the ongoing interest and support for VK2735 from both clinical investigators and participants. Results from this study are anticipated in the latter half of the year.
In addition to advancing its clinical pipeline, Viking has entered into an extensive manufacturing agreement with CordenPharma. This deal ensures a steady supply of active pharmaceutical ingredients (API) and provides vital fill and finish capabilities for both injectable and oral formulations of VK2735, paving the way for future commercialization efforts.
Looking at its pipeline, Viking is progressing its novel amylin agonist program and is on track to file an Investigational New Drug (IND) application by the end of the year. Furthermore, the company ended the first quarter with a robust balance sheet, maintaining over $850 million in cash, which bolsters its capacity to continue advancing its development programs.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Viking Therapeutics Inc (VKTX, Financial) is $93.13 with a high estimate of $125.00 and a low estimate of $30.00. The average target implies an upside of 261.26% from the current price of $25.78. More detailed estimate data can be found on the Viking Therapeutics Inc (VKTX) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, Viking Therapeutics Inc's (VKTX, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Key Business Developments
Release Date: February 05, 2025
- Research and Development Expenses (Q4 2024): $31 million, up from $20.5 million in Q4 2023.
- General and Administrative Expenses (Q4 2024): $15.3 million, up from $8.8 million in Q4 2023.
- Net Loss (Q4 2024): $35.4 million or $0.32 per share, compared to $24.6 million or $0.25 per share in Q4 2023.
- Research and Development Expenses (Full Year 2024): $101.6 million, up from $63.8 million in 2023.
- General and Administrative Expenses (Full Year 2024): $49.3 million, up from $37 million in 2023.
- Net Loss (Full Year 2024): $110 million or $1.01 per share, compared to $85.9 million or $0.91 per share in 2023.
- Cash, Cash Equivalents, and Short-term Investments (End of 2024): $903 million, up from $362 million at the end of 2023.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Viking Therapeutics Inc (VKTX, Financial) reported successful results from four different studies across its pipeline in 2024, including positive data from the VK2735 subcutaneous and oral tablet programs for obesity.
- The VK2809 program for the treatment of MASH and fibrosis achieved its primary, secondary, and exploratory endpoints, showing significant reductions in liver fat and improvements in MASH resolution rate and fibrosis.
- The company announced positive results from a Phase 1b clinical trial of VK0214 for X-linked adrenoleukodystrophy, demonstrating safety, tolerability, and significant reductions in plasma levels of very long chain fatty acids.
- Viking Therapeutics Inc (VKTX) closed a successful public offering of common stock, raising over $630 million, which bolstered its financial position with over $900 million in cash by the end of 2024.
- The company plans to initiate Phase 3 trials for VK2735 in obesity in the second quarter of 2025, indicating a clear path forward for its lead program.
Negative Points
- Viking Therapeutics Inc (VKTX) reported a net loss of $110 million for the year ended December 31, 2024, an increase from the $85.9 million loss in 2023, primarily due to increased research and development and administrative expenses.
- Research and development expenses rose significantly to $101.6 million in 2024 from $63.8 million in 2023, driven by increased manufacturing costs for drug candidates and stock-based compensation.
- General and administrative expenses also increased to $49.3 million in 2024 from $37 million in 2023, due to higher costs related to stock-based compensation, salaries, and professional fees.
- The company faces logistical challenges in manufacturing and preparing clinical materials for its Phase 3 trials, which could impact timelines.
- There is uncertainty regarding the recruitment timeline for the Phase 3 obesity studies, as the company has not yet provided guidance on patient enrollment duration.
