4 Reasons Why Buying Viking Therapeutics Stock Right Now Is a Smart Move

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].