Viking(VKTX.US)Q3 beats expectations, VK2735 outlook is unanimously bullish on Wall Street
1min read Viking Therapeutics(VKTX.US) jumped on Thursday as Wall Street anticipated positive news on its obesity candidate VK2735 and the company reported better-than-expected Q3 financials. Shares rose about 21% to a five-month high by the close of trading on Thursday.According to the earnings report, Viking improved its liquidity situation in Q3, with cash, cash equivalents, and short-term investments of $930 million as of September 30, up from $362 million at the end of 2023, and a loss per share of 22 cents, better than the market's loss of 24 cents and the loss of 23 cents in the same period last year.However, the upcoming VK2735 data from Viking is what analysts are focusing on.The company said that VK2735 (a dual GLP-1/GIP receptor agonist, similar to Eli Lilly's blockbuster weight loss drug Zepbound) is still on track to enter late-stage development after receiving feedback from the FDA at a meeting this year.Earlier this year, Viking reported positive results from its mid-stage trial of injectable VK2735, the VENTURE trial, with 13-week data selected for presentation at the American Obesity Association's annual meeting (also known as Obesity Week) in early November.Viking is expected to share additional Phase 1 data for oral VK2735 at the same event from November 3-6.CEO Brian Lian said: "Next up, we plan to initiate a 13-week obesity Phase 2 study later this year." He added, "As we launch the study, we will provide details on the study design."Wall Street is optimistic about VK2735's potential to challenge established players in the weight loss market, Novo Nordisk (NVO.US) and Eli Lilly (LLY.US).In September, Morgan Stanley initiated coverage of Viking with a "buy" rating, citing the upcoming data as a positive catalyst.Meanwhile, Oppenheimer analyst Jay Olson also gave a similar rating: "We expect Viking to focus on the oral Ph2 and subQ Ph3 studies after the second phase meeting later this year, and we look forward to more details on the study design."
