Viking TherapeuticsVKTX reported a third-quarter 2026 loss of $1.55 per share, wider than the Zacks Consensus Estimate of a loss of $1.00. The loss widened 91.4% over the year-ago period, driven by higher operating expenses.
Viking generated no revenue, unchanged from the year-earlier quarter. Its lead obesity candidate, VK2735, is in four phase III registration studies. During the earnings conference call, CEO Brian Lian said the company was about two and a half years from a potential VK2735 launch.
VKTX's Operating Expenses Surge on Development Work
Research and development (R&D) expenses climbed 85.4% year over year to $166.8 million. The increase primarily reflected spending on clinical studies, drug manufacturing, stock-based compensation and employee costs, partly offset by lower preclinical spending.
General and administrative expenses climbed 135.9% to $20.3 million due to legal and patent services, external consultants, stock-based compensation and employee costs.
Total operating expenses were $187.1 million, up 89.8% over the year-ago quarter.
VKTX Stock Performance
Year to date, shares of the company have lost 22% against the industry's 7% growth.
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Viking's VANQUISH Studies Remain on Track
VK2735 is an investigational dual GLP-1 and GIP receptor agonist being developed to treat obesity. The phase III VANQUISH-1 study targets adults with obesity, while VANQUISH-2 enrolls those with obesity and type II diabetes (T2D). The fully enrolled studies include roughly 4,500 and 1,000 participants, respectively.
Each study compares three VK2735 doses with placebo over 78 weeks, focusing on percentage weight loss. Viking expects the studies to finish in 2027. Extension studies are expected to begin in early 2027 and allow up to 52 additional weeks of treatment. Results from those extensions are anticipated in 2028.
VKTX Begins Phase III Testing of Oral VK2735
In October, the company initiated the SUNRISE-1 and SUNRISE-2 studies of once-daily oral VK2735, targeting adults with obesity and those with overweight or obesity and T2D, respectively. Each 68-week study plans to enroll 560 patients and evaluate doses of 27.5 mg, 35 mg and 55 mg against placebo.
These studies follow phase II results showing mean weight loss of up to 12.2% after 13 weeks. Up to 80% of treated participants lost at least 10% of their body weight, versus 5% in the placebo group. Viking sees the tablet as a way to offer patients an alternative to injections.
Viking's Maintenance Study Shows Durable Weight Loss
In the first part of its maintenance study, patients lost roughly 16% to 19% of baseline weight after 21 weeks of weekly injections. Participants transitioning to every-other-week injections retained 83% to 97% of that loss through week 33; those transitioning to monthly dosing retained 82% to 90%. The placebo-switch group retained 61%.
Another group receiving weekly 17.5-mg injections for 33 weeks achieved roughly 22% weight loss without a plateau. Management reported that adverse-event rates during less-frequent maintenance dosing were generally similar to placebo, supporting further study of more flexible regimens.
VKTX Expands Its Obesity Treatment Pipeline
Viking recently initiated the second part of the VK2735 maintenance study in approximately 195 adults. After 21 weeks of weekly injections, patients will switch to daily oral treatment, injections every other week or monthly, or placebo. Data are expected in 2027.
The company is also advancing VK3019, a dual amylin and calcitonin receptor agonist. Its phase I single-ascending-dose study is nearing completion, with a four-week multiple-ascending-dose study planned for the first quarter of 2027. Management views VK3019 as a potential standalone obesity drug or future combination with VK2735.
Viking's Cash Position Supports Development Plans
The company ended September with $960 million in cash, cash equivalents and short-term investments, up from $706 million at year-end 2025. It raised about $575 million in gross proceeds from concurrent common-stock and convertible-note offerings, with net proceeds of approximately $550 million.
On the earnings call, management indicated that quarterly cash usage should average around $100 million, although individual quarters will vary. Near-term general and administrative spending is expected to remain relatively flat, with increases possible as commercialization approaches.
CEO Lian said Viking has a senior vice president overseeing commercialization who has worked on multiple obesity drug launches, along with leaders in market access, medical affairs and health economics. Viking has also added personnel in technical operations, chemistry, manufacturing and controls, supply chain, quality and compliance. These investments are intended to prepare for commercialization while late-stage studies advance.
VKTX's Zacks Rank
Viking currently carries a Zacks Rank #3 (Hold).
Viking Therapeutics, Inc. Price
Viking Therapeutics, Inc. price | Viking Therapeutics, Inc. Quote
Our Key Picks Among Biotech Stocks
A couple of better-ranked stocks in the biotech sector include TG TherapeuticsTGTX and Amneal PharmaceuticalsAMRX. While TGTX currently sports a Zacks Rank #1 (Strong Buy), AMRX carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Over the past 30 days, earnings per share (EPS) estimates for TG Therapeutics have risen from 92 cents to 94 cents for 2026. Over the same period, estimates for 2027 EPS have increased from $2.65 to $2.66. TGTX's shares have risen 93% year to date.
TG Therapeutics' earnings missed estimates in three of the trailing four quarters and beat in the remaining one, with the average surprise being 184.65%.
Over the past 30 days, EPS estimates for Amneal Pharmaceuticals have increased from $1.03 to $1.04 for 2026. Over the same period, estimates for 2027 EPS have risen from $1.16 to $1.19. AMRX's shares have surged 68% year-to-date.
Amneal Pharmaceuticals' earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 32.82%.
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This article originally published on Zacks Investment Research (zacks.com).
