Viking Therapeutics: GLP-1/GIP Receptor Agonist And Its Competitive Landscape

Core Thesis - Viking Therapeutics (NASDAQ:VKTX) is a clinical-stage biotechnology company focused on developing novel treatments for metabolic and endocrinology disorders, with its leading program VK2735 targeting obesity through dual agonism of GLP-1 and GIP receptors [2][3] VK2735 Development - VK2735 has two formulations: a subcutaneous weekly injection nearing the end of Phase II trials and a daily oral tablet expected to enter Phase II in Q4 2024 [2][3][10] - The subcutaneous formulation has shown promising results, achieving a weight loss of up to 14.7% from baseline in 13 weeks, with a low incidence of severe treatment-emergent adverse events [8][9] - The oral formulation has demonstrated a weight loss of up to 5.3% from baseline in Phase I trials, with good tolerability and safety results [10][12] Competitive Landscape - The obesity drug market is currently dominated by Eli Lilly and Novo Nordisk, but VK2735 could be the first oral GLP-1/GIP dual agonist if approved [3][13] - Other competitors include Amgen, AstraZeneca, and Roche, with several candidates in Phase II or above, indicating a highly competitive environment [13][14] - VK2735's clinical performance is favorable compared to competitors, with the potential for significant market impact if it successfully navigates regulatory approval [15][22] Financial Overview - Viking reported $942 million in cash and equivalents as of June 2024, a 139.8% increase from the previous year, providing a cash runway for approximately four years [16][17] - The company incurred a net loss of $49.606 million in H1 2024, with anticipated costs for the Phase III trial of VK2735 estimated at $300 million [17][18] Valuation and Market Performance - Viking's shares have increased by 245% year-to-date, with a current price around $63, showing signs of recovery after recent market fluctuations [18][19] - Analysts have a consensus rating of "Strong Buy" for VKTX, with a projected upside potential of 77% over the next twelve months [19][20]