Viking Therapeutics(VKTX) - 2025 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Research and development expenses for Q2 2025 were $60.2 million, up from $23.8 million in Q2 2024, primarily due to increased clinical study costs and manufacturing expenses [7] - General and administrative expenses for Q2 2025 were $14.4 million, compared to $10.3 million in Q2 2024, driven by higher stock-based compensation and salaries [8] - The net loss for Q2 2025 was $65.6 million, or $0.58 per share, compared to a net loss of $22.3 million, or $0.20 per share in Q2 2024 [8] - For the first six months of 2025, research and development expenses totaled $101.5 million, up from $47.9 million in the same period in 2024 [9] - The net loss for the first half of 2025 was $111.2 million, or $0.99 per share, compared to a net loss of $49.6 million, or $0.46 per share in the first half of 2024 [9] - Cash, cash equivalents, and short-term investments as of June 30, 2025, were $800 million, down from $930 million at the end of 2024 [10] Business Line Data and Key Metrics Changes - The VK2735 program for obesity has advanced to Phase III with the initiation of the Vanquish registration program, which includes two trials targeting adults with obesity and those with type 2 diabetes [4][14] - The oral formulation of VK2735 has shown promising results in Phase I studies, achieving up to 8.2% weight loss after 28 days of daily dosing [18] - The VENTURE Phase II study for VK2735 demonstrated statistically significant weight loss effects, with reductions in mean body weight of up to 14.7% [12] Market Data and Key Metrics Changes - The company is focusing on the obesity market, which is seeing strong demand for new and differentiated weight loss therapeutics, as evidenced by rapid enrollment in VK2735 trials [22][23] - The competitive landscape includes other agents, but the company believes there is room for multiple products in the obesity treatment market [112] Company Strategy and Development Direction - The company is committed to advancing its clinical pipeline, particularly the VK2735 obesity program, while maintaining fiscal discipline and a strong balance sheet to support ongoing and future trials [21][22] - The strategy includes both subcutaneous and oral formulations of VK2735 to provide treatment options for patients [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing clinical trials and the potential for VK2735 to meet significant unmet needs in obesity treatment [22] - The company plans to file an IND for its amylin receptor agonist program in Q4 2025, indicating a commitment to expanding its pipeline [21] Other Important Information - The company has established a comprehensive manufacturing agreement to support the potential commercialization of VK2735 [6] - Management highlighted the importance of maintaining participant engagement in placebo groups during long-term studies [100] Q&A Session Summary Question: Will the Phase II readout include data from all cohorts? - Yes, it will include all cohorts as it is a parallel cohort study [28] Question: What is the rationale for the dosing in the Phase III trial? - The decision to increase the top dose to 17.5 mg was based on encouraging tolerability and efficacy observed in previous studies [37] Question: How will the company motivate placebo patients to remain in the study? - The eligibility for an open-label extension after the trial is expected to help maintain participation [100] Question: What are the expectations for the oral program's Phase II data? - The company is looking for significant weight loss and a favorable tolerability profile to consider advancing to Phase III [119]