VKTX Beats on Q3 Earnings, Stock Up on Obesity Pipeline Advancements

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]