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Viking Therapeutics (VKTX)
NASDAQ:VKTX

Viking Therapeutics (VKTX) AI Stock Analysis

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Viking Therapeutics

(NASDAQ:VKTX)

53Neutral
Viking Therapeutics' overall score reflects the typical profile of an early-stage biotech company. Strengths include a robust balance sheet and promising clinical trial results, but these are offset by high operational losses and cash burn. Technical indicators suggest short-term positive momentum, yet valuation concerns persist due to the absence of profitability. The earnings call provided a positive outlook with significant pipeline advancements.
Positive Factors
Drug Development
VK2735, a GLP-1/GIP dual agonist, is considered incrementally better than tirzepatide, offering improved potency and pharmacokinetics.
Financial Stability
Viking Therapeutics has a strong cash position of $852M, which is expected to be sufficient to fund its Phase 3 study for injectable VK2735 and the Phase 2 oral study.
Market Potential
The obesity market is large enough to accommodate VK2735, with expectations that it will rise to multi-blockbuster status due to its improvements over existing therapies.
Negative Factors
Mergers and Acquisitions
There is a perception that the supply agreement with CordenPharma reduces the likelihood of near-term mergers and acquisitions.
Regulatory Challenges
Management is exploring potential paths for monthly dosing approval, which could provide more flexibility and appeal to patients.

Viking Therapeutics (VKTX) vs. S&P 500 (SPY)

Viking Therapeutics Business Overview & Revenue Model

Company DescriptionViking Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development of novel therapies for metabolic and endocrine disorders. The company's lead drug candidate is VK2809, an orally available tissue and receptor-subtype selective agonist of the thyroid hormone receptor beta (TRß), which is in Phase IIb clinical trials to treat patients with biopsy-confirmed non-alcoholic steatohepatitis, as well as NAFLD. It also develops VK5211, an orally available non-steroidal selective androgen receptor modulator that is in Phase II clinical trials for the treatment of patients recovering from non-elective hip fracture surgery; VK0612, an orally available Phase IIb-ready drug candidate for type 2 diabetes; and VK0214, an orally available tissue and receptor-subtype selective agonist of the TRß for X-linked adrenoleukodystrophy. The company was incorporated in 2012 and is headquartered in San Diego, California.
How the Company Makes MoneyViking Therapeutics makes money primarily through the development and potential commercialization of its drug candidates. The company generates revenue through strategic partnerships, collaborations, and licensing agreements with other pharmaceutical companies. These partnerships may involve upfront payments, milestone payments, and royalties based on the success and commercialization of its drug candidates. Currently, Viking Therapeutics does not have commercialized products on the market, so its revenue largely depends on funding from investors and partnerships with other companies in the biopharmaceutical industry.

Viking Therapeutics Financial Statement Overview

Summary
Viking Therapeutics has a strong balance sheet with low leverage, but significant operational losses and negative cash flow due to high R&D expenses. The company is in a pre-revenue stage, typical for biotech firms, and relies heavily on equity financing.
Income Statement
Viking Therapeutics shows consistent operational losses with no revenue generation, as expected in early-stage biotech companies. The continuous increase in EBIT and net losses over the years reflects high R&D and operational expenses without offsetting revenue. The absence of revenue growth remains a significant concern.
Balance Sheet
65
The company maintains a strong equity position with minimal debt, evidenced by a high equity ratio and low debt-to-equity ratio. However, the decreasing cash reserves, despite high stockholder equity, indicate potential future liquidity challenges if revenue generation doesn't commence.
Cash Flow
Operating cash flows are negative, reflecting the company's investment in R&D activities. The high financing cash flow in recent years suggests dependence on external funding. While free cash flow is negative, the company has managed substantial financing inflows, indicating investor confidence.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.000.000.000.00
Gross Profit
0.00-292.00K-291.00K-296.00K-277.00K
EBIT
-150.92M-100.83M-70.36M-55.68M-42.66M
EBITDA
-109.52M-100.83M-70.36M-55.39M-42.66M
Net Income Common Stockholders
-109.96M-85.89M-67.38M-54.00M-36.05M
Balance SheetCash, Cash Equivalents and Short-Term Investments
902.61M362.08M155.49M202.10M248.39M
Total Assets
908.32M368.49M168.53M210.66M256.50M
Total Debt
1.12M1.26M1.56M29.00K359.00K
Net Debt
-25.56M-54.26M-35.07M-26.34M-28.76M
Total Liabilities
28.04M20.07M23.21M8.78M12.16M
Stockholders Equity
880.28M348.42M145.32M201.88M244.34M
Cash FlowFree Cash Flow
-87.79M-73.38M-48.40M-47.59M-21.78M
Operating Cash Flow
-87.79M-73.38M-48.40M-47.59M-21.78M
Investing Cash Flow
-553.37M-179.09M54.75M37.96M41.57M
Financing Cash Flow
612.46M271.38M4.16M6.88M950.00K

Viking Therapeutics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price27.85
Price Trends
50DMA
26.52
Positive
100DMA
31.34
Negative
200DMA
45.86
Negative
Market Momentum
MACD
0.68
Negative
RSI
54.97
Neutral
STOCH
52.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VKTX, the sentiment is Positive. The current price of 27.85 is above the 20-day moving average (MA) of 25.86, above the 50-day MA of 26.52, and below the 200-day MA of 45.86, indicating a neutral trend. The MACD of 0.68 indicates Negative momentum. The RSI at 54.97 is Neutral, neither overbought nor oversold. The STOCH value of 52.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VKTX.

Viking Therapeutics Risk Analysis

Viking Therapeutics disclosed 74 risk factors in its most recent earnings report. Viking Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Viking Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$2.43B10.6937.24%31.85%
53
Neutral
$3.03B-14.40%-23.84%
52
Neutral
$5.23B3.70-41.86%2.84%16.58%-0.16%
50
Neutral
$2.40B-103.82%48.04%48.16%
50
Neutral
$2.78B-82.95%-22.34%
45
Neutral
$2.86B-32.02%-0.12%
45
Neutral
$2.35B-74.17%-43.10%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VKTX
Viking Therapeutics
27.85
-52.35
-65.27%
ACAD
ACADIA Pharmaceuticals
16.93
1.72
11.31%
APLS
Apellis Pharmaceuticals
17.81
-24.71
-58.11%
SRRK
Scholar Rock Holding
30.99
16.44
112.99%
CRNX
Crinetics Pharmaceuticals
32.70
-16.72
-33.83%
IMVT
Immunovant
14.30
-15.40
-51.85%

Viking Therapeutics Earnings Call Summary

Earnings Call Date:Apr 23, 2025
(Q4-2024)
|
% Change Since: 7.99%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong focus on successful clinical trial results and a solid financial position, despite increased expenses and net loss. The company is advancing its lead programs with significant progress in pipeline development.
Q4-2024 Updates
Positive Updates
Successful Clinical Trials Across Multiple Programs
Viking reported successful results from four studies across its pipeline, including VK2735 for obesity and VK2809 for NASH, achieving primary and secondary endpoints.
Strong Financial Position
Viking closed 2024 with over $900 million in cash, providing resources to advance its pipeline programs.
Positive Phase 2 VENTURE Trial Results for VK2735
The VENTURE trial achieved primary and secondary endpoints, with significant reductions in mean body weight from baseline up to 14.7%.
Advancement of VK2735 to Phase 3 Development
VK2735 advanced to Phase 3 development for obesity, with trials expected to initiate in the second quarter of 2025.
Positive Phase 1b Results for VK0214 in X-ALD
VK0214 demonstrated significant reductions in plasma levels of very long chain fatty acids and was safe and well tolerated.
Negative Updates
Increased Net Loss for 2024
Viking reported a net loss of $110 million for 2024, compared to $85.9 million in 2023, due to increased R&D and administrative expenses.
Increased Expenses
R&D expenses increased to $101.6 million from $63.8 million in 2023, and general administrative expenses rose to $49.3 million from $37 million in 2023.
Company Guidance
During the Viking Therapeutics Fourth Quarter and Full Year 2024 Financial Results Conference Call, key guidance was provided on several metrics related to their development programs and financial results. The company reported a net loss of $110 million for the full year 2024 compared to $85.9 million in 2023, with research and development expenses increasing to $101.6 million from $63.8 million the previous year. Viking also highlighted significant progress in their pipeline, including successful results from trials such as the VK2735 Phase 2 VENTURE trial for obesity, which showed up to 14.7% reduction in body weight, and the VK2809 Phase 2b VOYAGE trial for NASH, demonstrating reductions in liver fat and improvements in fibrosis. Additionally, they raised over $630 million through a public stock offering, bolstering their financial position with $903 million in cash and equivalents as of year-end. The company plans to initiate Phase 3 trials for VK2735 in obesity in the second quarter of 2025 and advance other programs in its portfolio.

Viking Therapeutics Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Viking Therapeutics’ Promising Results for Obesity Treatment
Positive
Nov 4, 2024

Viking Therapeutics has presented promising data from its VK2735 obesity program at ObesityWeek® 2024, showcasing up to 8.2% weight loss from baseline with an oral formulation over 28 days. The treatment demonstrated strong tolerability, with mild GI-related side effects, and the potential for longer-term weight loss. These findings are significant for those exploring innovative solutions in metabolic disorder treatments, with both oral and subcutaneous forms of VK2735 showing durable effects.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.