Viking Therapeutics Inc (NASDAQ:VKTX) shares are popping Thursday. The obesity drug developer reported third-quarter results that paired a wider-than-expected loss with positive study data and a $960 million cash balance. Here’s what you should know.
- Viking Therapeutics stock is charging ahead with explosive momentum. Why is VKTX stock up today?
Viking Therapeutics Stock Rises After Q3 Report
Viking reported results Wednesday after the close. Analysts expected a loss of $1.07 per share, but the company posted a loss of $1.55 per share. Viking also shared what it called positive findings on how its obesity drug, VK2735, helps patients keep weight off. The pipeline news may be outweighing the miss.
The quarterly loss reached $183.2 million, double last year’s $90.8 million. Spending drove the jump. Research and development costs climbed to $166.8 million from $90 million. Higher salaries and stock compensation, more drug manufacturing and a bigger slate of trials all pushed the total up.
Administrative costs rose to $20.3 million from $8.6 million. Across nine months, the loss came to $469.5 million, or $4.03 a share.
Viking Reports Positive Weight Maintenance Data for VK2735
Patients who eased off weekly injections kept most of their lost weight, Viking said. The study enrolled 180 people. VK2735 is an experimental obesity drug that acts on two hormone pathways, GLP-1 and GIP.
In the first 21 weeks, weekly shots cut body weight by about 16% to 19%, while placebo patients lost roughly nothing. Patients then switched to a shot every other week or once a month. The every-other-week group held onto 83% to 97% of its loss, and the monthly group kept 82% to 90%. Patients moved to placebo kept 61%. A separate group that stayed on weekly doses lost about 22%. The study’s second part has begun. It adds a daily pill to the mix.
Viking Moves Oral VK2735 Into Phase 3
Phase 3 is the final testing stage before regulators decide whether to approve a drug. This month, Viking began a late-stage program called SUNRISE for a tablet version of VK2735. It plans two trials of 560 adults each, one in obesity and one in obesity or overweight plus type 2 diabetes. Patients take a daily dose for 68 weeks. Viking’s pitch: a successful pill would beat rivals to market as the first oral drug to hit both the GLP-1 and GIP pathways.
The injectable version is further along. Its two Phase 3 trials, VANQUISH-1 and VANQUISH-2, enrolled about 4,500 and 1,000 patients, and Viking expects both to wrap up in 2027. The company said its cash gives it room to fund multiple late-stage trials and build a commercial team for a possible launch.
VKTX Shares Rise
VKTX Price Action: Viking Therapeutics shares were up 6.19% at $26.93 at the time of publication on Thursday. The stock is trading near its 52-week low of $23.82, according to Benzinga Pro.
Image: Shutterstock
