Viking Therapeutics Inc (NASDAQ:VKTX) shares are retreating Thursday despite reporting a narrower second-quarter loss than expected. Here’s what you should know.
- Viking Therapeutics stock is showing weakness. What’s pulling VKTX shares down?
Viking Beats Earnings Estimates but Stock Faces Selling Pressure
The quarter ended June 30 produced a net loss of $1.10 per share, a figure that came in 12% better than the $1.25 loss analysts had been expecting.
The loss widened considerably from the 58 cents per share recorded in the same period a year ago, driven by research and development costs that nearly doubled to $115.8 million from $60.2 million as the company poured more resources into clinical trials, personnel and outside advisors.
Viking closed the quarter holding $502 million in cash and short-term investments, a reduction from $706 million at the start of the year that reflects the accelerating pace of investment, but still leaves the company with meaningful runway heading into a series of important data events.
Canaccord Genuity’s Edward Nash maintained a Buy rating and nudged the price objective to $114 from $107, a move that signals continued conviction in the pipeline even as the stock retreats.
Pipeline Milestones Are Coming Into Focus
Both arms of the VANQUISH Phase 3 program for the subcutaneous version of VK2735 are fully enrolled and moving through their 78-week treatment periods without issue. VANQUISH-1 brought in roughly 4,500 patients and VANQUISH-2 added around 1,000 more, with all participants randomized across weekly dose levels and placebo. The studies are measuring percentage change in body weight from baseline as the primary endpoint alongside a range of secondary measures tracking how many patients hit various weight loss thresholds.
Arriving sooner is data from a maintenance dosing study that will offer a window into whether patients can hold onto their weight loss while shifting to less frequent injections, a question with real commercial implications given how central long-term tolerability is to the obesity treatment market. Results are expected before the end of September.
The oral formulation of VK2735 may carry the most long-term significance. Phase 2 testing showed participants losing up to 12.2% of their body weight over 13 weeks of once-daily dosing, with four in five patients on the drug achieving at least 10% weight loss against just 5% in the placebo group.
VKTX Shares Are Sliding
VKTX Price Action: Viking Therapeutics shares were down 4.49% at $31.93 at the time of publication on Thursday, according to Benzinga Pro.
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