Viking Therapeutics(US:VKTX) The Motley Foolยท2024-11-07 15:15Core 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].