VKTX Stock Down on Wider-Than-Expected Loss in Q2, Nil Sales

Core Insights - Viking Therapeutics (VKTX) reported a second-quarter 2025 loss of $0.58 per share, which was wider than the Zacks Consensus Estimate of a loss of $0.44, and compared to a loss of $0.20 per share in the same quarter last year [1][7] - The company currently has no approved products and has not generated any revenues [1] Financial Performance - Research and development (R&D) expenses for the quarter were $60.2 million, a significant increase from $23.8 million in the prior year, driven by higher costs related to clinical studies and manufacturing, as well as increased employee-related expenses [2] - General and administrative expenses rose to $14.4 million, reflecting a 40% year-over-year increase, primarily due to higher employee-related costs [2] - As of June 30, 2025, Viking had cash, cash equivalents, and short-term investments totaling $808 million, down from $852 million as of March 31, 2025 [4] Market Reaction - Shares of VKTX fell 8% in after-market trading following the announcement of a wider-than-expected loss due to increased operating expenses [3] Future Guidance - Viking indicated that R&D expenses are expected to rise sequentially by approximately 25% to one-third in the third and fourth quarters of 2025 compared to the second quarter [5] Pipeline Developments - Viking is developing VK2735, a dual GLP-1 and GIP receptor agonist, for obesity treatment, with ongoing clinical studies for both oral and subcutaneous formulations [8] - The company launched the phase III VANQUISH program to evaluate VK2735 SC in adult patients, targeting enrollment of about 4,500 participants for VANQUISH-1 and around 1,100 for VANQUISH-2 [9] - An oral formulation of VK2735 is being evaluated in the phase II VENTURE-Oral Dosing study, with data expected by the end of the year [10] - Viking plans to file an investigational new drug application with the FDA in Q4 2025 for an internally developed amylin agonist program aimed at treating obesity [10]