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VKTX Beats on Q3 Earnings, Stock Up on Obesity Pipeline Advancements
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Viking Therapeutics (VKTX - Free Report) reported third-quarter 2024 loss per share of 22 cents, narrower than the Zacks Consensus Estimate of a loss of 24 cents. The company had incurred a loss of 23 cents per share in the year-ago quarter.
Currently, Viking Therapeutics does not have any approved product in its portfolio. Hence, it is yet to generate revenues.
Stay up-to-date with all quarterly releases:See Zacks Earnings Calendar.
More on VKTX’s Q3 Earnings
Research and development expenses totaled $22.8 million, up 24% year over year. The uptick was mainly due to increased manufacturing expenses for the company’s drug candidates, along with higher employee-related costs.
General and administrative expenses amounted to $13.8 million, up 55% year over year, primarily due to higher employee-related expenses, legal fees and services provided by third-party consultants.
As of Sept. 30, 2024, Viking Therapeutics had cash, cash equivalents and short-term investments worth $930 million compared with $942 million as of June 30, 2024.
VKTX’s Pipeline Updates
With no approved/marketed product in its portfolio, the company is focused on developing three drugs in its portfolio — VK2735 (for obesity), VK2809 (for non-alcoholic steatohepatitis [NASH]) and VK0214 (for X-linked adrenoleukodystrophy [X-ALD]).
Alongside the earnings results, management provided an update on VK2735, which is being developed in separate clinical studies, both as oral and subcutaneous (SC) formulations. While management intends to start a mid-stage study on the oral formulation of the drug before this year’s end, it has scheduled an end-of-phase II meeting with the FDA in fourth-quarter 2024 to discuss the design and timing for the planned phase III study on the SC formulation of the drug.
Shares of Viking Therapeutics were up nearly 5% in pre-market trading today, likely due to the encouraging pipeline update on the obesity drug. VKTX is one of the few biotech stocks with immense potential in the obesity space. VK2735 has shown blockbuster potential as both oral and SC formulations, based on superior weight reduction capabilities demonstrated in previously reported clinical studies.
Year to date, the company’s shares have skyrocketed 224.5% against the industry’s 2.5% decline.
Image Source: Zacks Investment Research
Management is also planning to file an investigational new drug (IND) application with the FDA next year to advance an internally developed amylin agonist program to clinical development for treating obesity.
Earlier this month, VKTX reported positive results from a phase Ib study evaluating VK0214 in patients with adrenomyeloneuropathy, a form of a rare neurogenerative disease called X-ALD. The study met its primary endpoint — a once-daily dose of VK0214 over 28 days was safe and well-tolerated in study participants. Treatment with the drug also significantly reduced plasma levels of very long-chain fatty acids and other lipids compared to placebo.
In June, Viking completed the phase IIb VOYAGE study on VK2809 in patients with biopsy-confirmed NASH. The study achieved its secondary endpoints of histologic changes assessed by hepatic biopsy after 52 weeks of treatment with VK2809 when compared with placebo. Overall, 40-50% of patients who received VK2809 achieved NASH resolution (meaning the disease symptoms disappeared) and at least a one-stage improvement in fibrosis compared to 20% in the placebo group. The study had previously achieved its primary endpoint — patients who received VK2809 achieved a statistically significant reduction in liver fat content following 12 weeks of treatment.
In the past 60 days, estimates for Amicus Therapeutics’ 2024 earnings per share (EPS) have moved up from 20 to 22 cents. EPS estimates for 2025 have risen from 48 to 53 cents during the same period. Year to date, shares of FOLD have lost 19.7%.
FOLD’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 23.96%.
In the past 60 days, estimates for Castle Biosciences’ 2024 loss per share have narrowed from $1.28 to 58 cents. Loss per share estimates for 2025 have improved from $2.15 to $2.13 during the same period. Year to date, shares of Castle Biosciences have surged 47.9%.
CSTL’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 132.32%.
In the past 60 days, estimates for Fate Therapeutics’ 2024 loss per share have narrowed from $1.74 to $1.73. Loss per share estimates for 2025 have narrowed from $1.71 to $1.69 during the same period. Year to date, shares of FATE have lost 19.0%.
FATE’s earnings beat estimates in three of the trailing four quarters and met the mark once, delivering an average surprise of 18.22%.
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VKTX Beats on Q3 Earnings, Stock Up on Obesity Pipeline Advancements
Viking Therapeutics (VKTX - Free Report) reported third-quarter 2024 loss per share of 22 cents, narrower than the Zacks Consensus Estimate of a loss of 24 cents. The company had incurred a loss of 23 cents per share in the year-ago quarter.
Currently, Viking Therapeutics does not have any approved product in its portfolio. Hence, it is yet to generate revenues.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
More on VKTX’s Q3 Earnings
Research and development expenses totaled $22.8 million, up 24% year over year. The uptick was mainly due to increased manufacturing expenses for the company’s drug candidates, along with higher employee-related costs.
General and administrative expenses amounted to $13.8 million, up 55% year over year, primarily due to higher employee-related expenses, legal fees and services provided by third-party consultants.
As of Sept. 30, 2024, Viking Therapeutics had cash, cash equivalents and short-term investments worth $930 million compared with $942 million as of June 30, 2024.
VKTX’s Pipeline Updates
With no approved/marketed product in its portfolio, the company is focused on developing three drugs in its portfolio — VK2735 (for obesity), VK2809 (for non-alcoholic steatohepatitis [NASH]) and VK0214 (for X-linked adrenoleukodystrophy [X-ALD]).
Alongside the earnings results, management provided an update on VK2735, which is being developed in separate clinical studies, both as oral and subcutaneous (SC) formulations. While management intends to start a mid-stage study on the oral formulation of the drug before this year’s end, it has scheduled an end-of-phase II meeting with the FDA in fourth-quarter 2024 to discuss the design and timing for the planned phase III study on the SC formulation of the drug.
Shares of Viking Therapeutics were up nearly 5% in pre-market trading today, likely due to the encouraging pipeline update on the obesity drug. VKTX is one of the few biotech stocks with immense potential in the obesity space. VK2735 has shown blockbuster potential as both oral and SC formulations, based on superior weight reduction capabilities demonstrated in previously reported clinical studies.
Year to date, the company’s shares have skyrocketed 224.5% against the industry’s 2.5% decline.
Management is also planning to file an investigational new drug (IND) application with the FDA next year to advance an internally developed amylin agonist program to clinical development for treating obesity.
Earlier this month, VKTX reported positive results from a phase Ib study evaluating VK0214 in patients with adrenomyeloneuropathy, a form of a rare neurogenerative disease called X-ALD. The study met its primary endpoint — a once-daily dose of VK0214 over 28 days was safe and well-tolerated in study participants. Treatment with the drug also significantly reduced plasma levels of very long-chain fatty acids and other lipids compared to placebo.
In June, Viking completed the phase IIb VOYAGE study on VK2809 in patients with biopsy-confirmed NASH. The study achieved its secondary endpoints of histologic changes assessed by hepatic biopsy after 52 weeks of treatment with VK2809 when compared with placebo. Overall, 40-50% of patients who received VK2809 achieved NASH resolution (meaning the disease symptoms disappeared) and at least a one-stage improvement in fibrosis compared to 20% in the placebo group. The study had previously achieved its primary endpoint — patients who received VK2809 achieved a statistically significant reduction in liver fat content following 12 weeks of treatment.
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
Some better-ranked stocks from the sector are Amicus Therapeutics (FOLD - Free Report) , Castle Biosciences (CSTL - Free Report) and Fate Therapeutics (FATE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Amicus Therapeutics’ 2024 earnings per share (EPS) have moved up from 20 to 22 cents. EPS estimates for 2025 have risen from 48 to 53 cents during the same period. Year to date, shares of FOLD have lost 19.7%.
FOLD’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 23.96%.
In the past 60 days, estimates for Castle Biosciences’ 2024 loss per share have narrowed from $1.28 to 58 cents. Loss per share estimates for 2025 have improved from $2.15 to $2.13 during the same period. Year to date, shares of Castle Biosciences have surged 47.9%.
CSTL’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 132.32%.
In the past 60 days, estimates for Fate Therapeutics’ 2024 loss per share have narrowed from $1.74 to $1.73. Loss per share estimates for 2025 have narrowed from $1.71 to $1.69 during the same period. Year to date, shares of FATE have lost 19.0%.
FATE’s earnings beat estimates in three of the trailing four quarters and met the mark once, delivering an average surprise of 18.22%.