Viking Therapeutics, Inc. (VKTX): A Bull Case Theory

Company Overview - Viking Therapeutics, Inc. is a clinical-stage biotechnology company focused on metabolic and endocrine disorders, particularly in obesity, diabetes, and NASH [2] - The company is advancing both injectable and oral dual-agonist therapies, positioning itself as a strategically scarce asset within the GLP-1/GIP treatment revolution [2] Key Programs - The lead program, VK2735, targets obesity and type-2 diabetes, showing a mean weight loss of approximately 14–15% over 13 weeks in Phase 2 trials, with strong tolerability [3] - Viking is advancing two pivotal programs: VANQUISH (injectable) and VENTURE-Oral, with the oral formulation potentially expanding patient reach significantly if efficacy is maintained [3] - The second major asset, VK2809, is aimed at NASH and lipid disorders, demonstrating up to 55% median liver-fat reduction in Phase 2 trials, indicating a favorable safety profile [4] Financial Position - As of Q3 2025, Viking had approximately $715 million in cash and no debt, providing a strong balance sheet and sufficient runway to fund Phase 3 programs without near-term dilution [5] - Commercialization of VK2735 is anticipated around 2028, with profitability expected by 2029–2030 [5] Market Potential and Valuation - The base-case valuation suggests an enterprise value of roughly $11.5 billion, translating to approximately $110 per share, indicating significant upside potential [5] - The company is positioned at the intersection of two multi-billion-dollar markets, balancing near-term visibility with longer-term growth opportunities [4] Investor Sentiment - The stock price has appreciated approximately 27.64% since previous coverage due to increased investor optimism around clinical progress [6] - The current bullish thesis emphasizes balance sheet strength, NASH optionality, and potential for mergers and acquisitions from larger pharmaceutical players [6]