3 Things You Need to Know if You Buy Viking Therapeutics Today

Core Viewpoint - Viking Therapeutics is positioned as an exciting biotech company with significant potential for growth, primarily driven by its clinical-stage candidate for weight loss, VK2735, which could lead to substantial share price increases in the coming years [1][2]. Group 1: Major Catalysts - Viking Therapeutics has at least two major catalysts on the horizon, primarily related to clinical trial data readouts that could impact the company's profitability outlook [3]. - The clinical trials for VK2735, aimed at treating obesity, include an injectable formulation expected to enter phase 3 trials in late 2024 or early 2025, and a pill formulation set to begin phase 2 trials in Q4 2023, with potential weight loss of up to 8.2% within 28 days [4][5]. - Interim data updates for both formulations are anticipated in 2025, which could result in a total of four catalysts if preliminary data is released [5]. Group 2: Financial Position - Viking Therapeutics has a strong financial position, with $930 million in cash, equivalents, and short-term investments as of Q3, and operating expenses totaling $100.8 million for 2023, providing ample resources for upcoming clinical trials and manufacturing preparations [7][8]. - The company has less than $1 million in noncurrent liabilities, allowing for significant borrowing capacity if needed, and the current inflated share price would minimize the impact of issuing new equity for capital [9][10]. Group 3: Additional Pipeline Programs - In addition to its obesity treatments, Viking Therapeutics is developing therapies for metabolic dysfunction-associated steatohepatitis (MASH) and X-linked adrenoleukodystrophy (X-ALD), with the former recently completing phase 2b trials and data expected to be reported on November 19 [11][13]. - The X-ALD program is in earlier stages, having just finished phase 1b trials, with management evaluating safety data to determine the next steps [12].