VKTX Posts Wider-Than-Expected Loss in Q4, Stock Up on Pipeline Updates

Core Insights - Viking Therapeutics reported a Q4 2025 loss of $1.38 per share, which is wider than the Zacks Consensus Estimate of a loss of $0.89, and a significant increase from a loss of $0.32 per share in the same quarter last year [1][9] - The company has no approved products and has not generated any revenues [4] Financial Performance - Research and development expenses surged to $153.5 million in Q4 2025, compared to $31.0 million in the same period last year, primarily due to increased costs for clinical studies and employee-related expenses [2] - General and administrative expenses decreased by 26% year over year to $11.3 million, mainly due to lower legal and patent service costs [2] - For the full year 2025, Viking reported a loss of $3.19 per share, compared to a loss of $1.01 in the previous year [4] Cash Position - As of December 31, 2025, Viking Therapeutics had cash and cash equivalents of $706 million, a slight decrease from $715 million as of September 30, 2025 [3] Pipeline Developments - Viking is developing VK2735, a dual GLP-1 and GIP receptor agonist, for obesity treatment, with both oral and subcutaneous formulations in clinical studies [5] - The company has initiated a late-stage program for the subcutaneous formulation of VK2735, consisting of two phase III studies, VANQUISH-1 and VANQUISH-2, with enrollment for VANQUISH-1 already completed [6] - Plans to advance the oral version of VK2735 into late-stage development are set to begin in Q3 2026, which has positively impacted stock prices [7] Market Context - The obesity treatment market is currently dominated by Eli Lilly and Novo Nordisk, with their GLP-1 injections, and the advancement of VK2735 oral formulation positions Viking among a select group of companies with a phase III-ready oral obesity therapy [8] - The stock has underperformed, losing 3% over the past year compared to the industry’s nearly 19% growth [10]