Viking stock has slipped more than 20% from its peak.Viking Therapeutics (VKTX -0.54%) soared to center stage earlier this year as a potentially promising player in one of today's highest-growth healthcare markets: weight loss drugs. The biotech company presented solid data for a candidate that could eventually rival blockbuster weight loss drugs from big pharma companies Eli Lilly and Novo Nordisk. And in just one trading session, the shares skyrocketed, rising more than 100%.Since then, Viking has reitera ...

Core Viewpoint - Viking Therapeutics is positioned for success with multiple compelling reasons to invest in its stock, particularly as it approaches revenue generation and has a strong pipeline of clinical programs [1]. Group 1: Revenue Generation - Viking is on track to generate revenue for the first time, with its lead candidate VK2735 expected to enter phase 3 clinical trials in early 2025 after discussions with the FDA [2][3]. - In a 13-week trial, VK2735 demonstrated an average weight loss of 13.1% on a placebo-adjusted basis, with mild side effects, indicating its potential effectiveness compared to competitors [4][5]. Group 2: New Clinical Programs - The company plans to file for early-stage clinical trials in 2025 for a new weight loss therapy that targets amylin and calcitonin receptors, which are not currently represented in its pipeline [6]. - This new program could lead to rapid weight loss and improved maintenance of weight, positioning Viking competitively against other companies like AstraZeneca and Novo Nordisk [7][8]. Group 3: Financial Flexibility - Viking has over $930 million in cash and equivalents, with trailing-12-month R&D expenditures of $91 million, indicating strong financial health and minimal risk of share dilution [9][10]. - The absence of long-term debt and the ability to borrow at reasonable rates if needed further enhance its financial flexibility [11]. Group 4: Collaboration Opportunities - Viking has the potential to form collaboration agreements and partnerships, particularly for VK2735, as other biopharma companies may seek to participate in its success [12][13]. - Currently, Viking does not require additional resources from collaborators, but future partnerships could expedite market entry and enhance its commercialization strategy [14].

Core Viewpoint - Viking Therapeutics is positioned for significant growth with its lead candidate VK2735 in the anti-obesity market, supported by promising clinical data and strong financials [2][5][10]. Company Overview - Viking Therapeutics has not yet received approval for any drugs but is developing VK2735, which aims to compete with established players like Eli Lilly and Novo Nordisk in the weight loss drug market [4][5]. - The company presented new data at the Obesity Week 2024 conference, reinforcing the investment thesis for VK2735, indicating potential for substantial market share if approved [5][7]. Clinical Development - VK2735 is being tested in two formulations: a weekly injection and a daily pill, with the pill expected to enter phase 2 trials by the end of the year and the injection moving to phase 3 soon [6]. - In trials, participants using the highest dose of the VK2735 pill lost an average of 6.8% of body mass compared to 1.4% for the placebo group, with weight maintenance observed for at least a month post-treatment [7][8]. Competitive Advantage - VK2735 may offer a long-term weight maintenance solution, a capability currently lacking in major competitors, which could lead to sustained revenue from patients [8][9]. - The company has a strong financial position with $930 million in cash and no long-term debt, allowing it to fund ongoing clinical trials and additional R&D programs [10][11]. Financial Stability - Viking's operating expenses were only $134 million over the trailing 12 months, indicating ample resources to support its clinical programs without the risk of dilution from new stock offerings [10][12]. - The financial health of the company suggests it can withstand setbacks in clinical trials without significant impact [12].

Are we ready for the Great Obesity Drug Gold Rush of the 2020s?For high-profile biotech Viking Therapeutics (VKTX -13.36%), Monday was very much a good news/bad news kind of day. The company reported quite encouraging clinical results from a version of its investigational weight-loss drug. Before long, however, this was overshadowed by promising news from rival developers of similar treatments.Ultimately, after an early surge, Viking's shares closed the day more than 13% lower in price.Weight loss for profi ...

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Company Participation in Investor Conferences - Viking Therapeutics will participate in several upcoming investor conferences, including the Truist Healthcare Conference on November 7, 2024, the UBS Global Healthcare Conference from November 11-14, 2024, the Stifel 2024 Healthcare Conference on November 18-19, 2024, and the Jefferies London Healthcare Conference from November 19-21, 2024 [1] Company Overview - Viking Therapeutics is a clinical-stage biopharmaceutical company focused on developing novel therapies for metabolic and endocrine disorders, with three compounds currently in clinical trials [2] - The company's lead compound, VK2735, is a dual agonist for GLP-1 and GIP receptors, showing positive safety and clinical benefit in Phase 1 and Phase 2 trials for metabolic disorders [2] - VK2809, another compound, is a selective thyroid hormone receptor beta agonist that has met primary and secondary endpoints in a Phase 2b study for NASH and fibrosis, and has shown significant reductions in LDL-C and liver fat in a Phase 2a trial for NAFLD [2] - The company is also developing VK0214 for X-ALD, which demonstrated safety and significant reductions in VLCFAs in a Phase 1b trial [2]

The U.S. presidential election will be held on November 5, 2024, but there’s another event that investors may want to vote on before the election. From November 3 through November 6, the Obesity Society will hold its annual meeting, ObesityWeek 2024. Viking Therapeutics Inc. NASDAQ: VKTX will be a key presenter. Viking Therapeutics TodayVKTXViking Therapeutics$71.75 -1.60 (-2.18%) 52-Week Range$9.32▼$99.41Price Target$108.60Add to WatchlistViking will provide updates on its lead candidate's progress, VK2735 ...

Thank you for reading my research on Seeking Alpha. If you want to learn even more about my method and how I discover these investment opportunities, please check out my subscription marketplace service, Compounding Healthcare , and sign up for a free trial.It has been over five months since my previous Viking Therapeutics (NASDAQ: VKTX ) article , where I laid out a case for Viking Therapeutics as a prime acquisition target thanks to their impressive pipeline targeting obesity, NASH, X-ALD, and sarcopenia. ...

Core Insights - Viking Therapeutics experienced a significant stock price increase of over 21% following its latest earnings release, outperforming the S&P 500 index which rose by only 0.2% [1] Financial Performance - In the third quarter, Viking reported a net loss of just over $21 million ($0.22 per share), a slight improvement from more than $22 million in the same period of 2023, beating analyst expectations of a $0.24 per share loss [2] - The company ended the quarter with $930 million in cash, equivalents, and short-term investments, a substantial increase from $362 million at the end of 2023, providing a strong financial position for ongoing operations [2] - Viking's operating expenses for the third quarter were slightly over $36.5 million, indicating a long runway for continued development [2] Product Development - Viking's VK2735 GLP-1 weight-loss drug has shown promising results in phase 1 and phase 2 trials, positioning the company favorably for potential FDA approval if it succeeds in phase 3 trials [3] - The successful approval of VK2735 would place Viking among a select group of approved drugs in a rapidly growing market, enhancing its attractiveness as an investment opportunity [3]

Core Viewpoint - Viking Therapeutics reported a narrower loss per share of 22 cents for Q3 2024, compared to the Zacks Consensus Estimate of a loss of 24 cents, and a loss of 23 cents per share in the same quarter last year [1] Financial Performance - Research and development expenses increased by 24% year over year to $22.8 million, driven by higher manufacturing and employee-related costs [2] - General and administrative expenses rose by 55% year over year to $13.8 million, primarily due to increased employee-related expenses, legal fees, and third-party consulting services [2] - As of September 30, 2024, the company had cash, cash equivalents, and short-term investments totaling $930 million, a slight decrease from $942 million as of June 30, 2024 [2] Pipeline Updates - Viking Therapeutics is developing three drug candidates: VK2735 for obesity, VK2809 for non-alcoholic steatohepatitis (NASH), and VK0214 for X-linked adrenoleukodystrophy (X-ALD) [3] - Management plans to initiate a mid-stage study for the oral formulation of VK2735 by the end of 2024 and has scheduled an end-of-phase II meeting with the FDA to discuss the phase III study for the subcutaneous formulation [3] - Positive results were reported from a phase Ib study of VK0214, which was safe and well-tolerated, significantly reducing plasma levels of very long-chain fatty acids compared to placebo [5] - The phase IIb VOYAGE study on VK2809 achieved secondary endpoints, with 40-50% of patients achieving NASH resolution compared to 20% in the placebo group [6] Market Reaction - Shares of Viking Therapeutics rose nearly 5% in pre-market trading, attributed to the positive pipeline update regarding VK2735, which has shown significant weight reduction capabilities [4] - Year-to-date, the company's shares have increased by 224.5%, contrasting with a 2.5% decline in the industry [4] Company Ranking - Viking Therapeutics currently holds a Zacks Rank of 3 (Hold) [7]