Pre-Q3 Earnings: Is Viking Therapeutics Stock a Portfolio Must-Have?

Core Viewpoint - Viking Therapeutics (VKTX) is expected to report a loss of 70 cents per share for Q3 2025, with no revenues anticipated due to the absence of marketed drugs in its portfolio [2][5]. Financial Performance - The company's earnings have consistently missed estimates, with a negative average surprise of 15.65% over the past four quarters, including a 31.82% miss in the last reported quarter [3][4]. - Loss estimates for 2025 have increased from $2.39 to $2.45 per share in the last 60 days, indicating ongoing operational challenges [2][5]. Pipeline Updates - The upcoming investor call is expected to focus on updates regarding three key candidates: VK2735 for obesity, VK2809 for non-alcoholic steatohepatitis (NASH), and VK0214 for X-linked adrenoleukodystrophy (X-ALD) [7]. - VKTX has initiated a late-stage program for VK2735, which includes two phase III studies (VANQUISH-1 and VANQUISH-2) targeting different obesity patient groups [8]. - Investors are looking for updates on the oral version of VK2735, which showed mixed results in a mid-stage study, particularly concerning patient dropout rates due to adverse effects [9]. Competitive Landscape - VKTX is facing intense competition in the obesity treatment market from established players like Eli Lilly and Novo Nordisk, which are advancing their own oral treatments [18][19]. - The company is exploring partnership opportunities to support the clinical development of its NASH and X-ALD programs due to limited resources [19]. Stock Performance and Valuation - Year-to-date, VKTX's stock has declined nearly 14%, underperforming both the industry and the broader market [12]. - The stock is trading at a premium valuation, with a price/book ratio of 4.91 compared to the industry average of 3.41, indicating a higher valuation relative to its peers [15]. Financial Position - VKTX maintains a strong financial position with $808 million in cash and no outstanding debt, providing sufficient liquidity for ongoing operations and research and development [17].