CEO Brian Lian said a potential launch of obesity drug VK2735 remained about 2 and a half years away.
- Viking reported a $1.55 per share loss, versus the $1.06 loss analysts expected.
- The company held $960 million in cash and investments, with average quarterly cash usage projected around $100 million.
- Four Phase 3 trials are underway across injectable and oral versions of VK2735.
Shares of Viking Therapeutics (VKTX) fell nearly 3% overnight late Wednesday after posting a wider-than-expected quarterly loss, while CEO Brian Lian’s outlook for an obesity-drug launch more than two years away also sparked retail backlash.
VKTX stock rose nearly 2% to $25.36 on Wednesday, bringing its weekly gain to about 4% and putting it on track to end a four-week losing streak.
VKTX Launch Outlook Tests Investor Patience
Lian’s timeline came during a discussion of commercial preparations for VK2735, Viking’s experimental obesity treatment targeting the GLP-1 and GIP receptors. “We have a pretty solid commercial team, especially given that we’re 2 and a half years out from potential launch,” he said on Wednesday’s earnings call.
Viking is developing both injectable and tablet versions of VK2735 as it seeks to compete in an obesity-treatment market led by Eli Lilly and Novo Nordisk.
Lian said Viking has hired leaders in commercial operations, market access and medical affairs, and added staff in supply chain, technical operations, quality and compliance.
VKTX Q3 Review
Viking reported a third-quarter (Q3) loss of $1.55 per share, compared with the $1.06 loss analysts expected. Net loss more than doubled to $183.2 million from $90.8 million a year earlier.
Research and development expenses rose to $166.8 million from $90 million as trial and manufacturing costs increased. General and administrative expenses climbed to $20.3 million from $8.6 million.
Viking ended September with $960 million in cash, equivalents and short-term investments, up from $706 million at year-end. Stock and convertible-note offerings raised about $575 million before expenses during the quarter.
“But I think as we think about cash, just company-wide, I think we’d see a usage of average of around $100 million per quarter,” CFO Greg Zante said. “But some quarters will be higher, some will be lower moving forward.”
Viking Bets On Pills And Monthly Shots
Viking has four Phase 3 trials underway. Both injectable Vanquish trials are fully enrolled and on track, with the first patients expected to enter extension studies in early 2027. The oral Sunrise program began earlier this month. “If successful, we believe these studies will position VK2735 as the first oral formulation of a dual GLP-1/GIP agonist to reach the market,” Lian said.
When asked about tablet doses, he said Viking wanted fewer and smaller pills while protecting margins. “We also want to make sure that the program makes economic sense. We need to have sufficient gross margins to allow us to run a highly profitable enterprise,” he said.
Less-frequent treatment is another part of Viking’s pitch. After 21 weeks of weekly injections in its earlier maintenance study, patients switched to every-other-week dosing retained 83%-97% of their initial weight loss over the next 12 weeks. Monthly cohorts retained 82%-90%, versus 61% for patients switched to placebo.
However, a label for less-frequent dosing may come later, supported by the larger Vanquish extension studies. “But it seems more likely that the VANQUISH extension data would be sort of a standalone package that would be a supplement later. But again, too early to say definitively,” Lian said.
A second maintenance study, including a switch from injections to daily tablets, is expected to report results in 2027. Viking also plans to start a 28-day multiple-dose study of its amylin drug VK3019 in the first quarter of 2027.
How Do Retail Traders Feel About VKTX?
On Stocktwits, retail sentiment for VKTX improved to ‘neutral’ from ‘bearish’ levels a day ago amid a 163% jump in 24-hour message volumes.
One user said, “2.5 more years until commercialization? Plenty of time to find a new CEO then.” Another user said, “Again bullish on drug bearish on BL [CEO Brian Lian].”
A separate user said, “I think its becoming more and more obvious that he is going to GIA and definitely not sell completely.” Others defended its progress: “The company’s conference call was GREAT. The trials are all proceeding as expected.”
VKTX stock has declined 28% year-to-date.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<