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VKTX Stock Down on Wider-Than-Expected Loss in Q2, Nil Sales

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Key Takeaways

  • VKTX posted a Q2 loss of $0.58 per share, missing estimates and widening from $0.20 last year.
  • Higher R&D costs from clinical trials and staffing drove a 153% year-over-year expense increase.
  • Viking launched its phase III VANQUISH obesity trials and eyes a new IND filing by year-end.

Viking Therapeutics (VKTX - Free Report) reported second-quarter 2025 loss of 58 cents per share, wider than the Zacks Consensus Estimate of a loss of 44 cents. The company had incurred a loss of 20 cents per share in the year-ago quarter.

Currently, Viking Therapeutics does not have any approved products in its portfolio. Hence, it it yet to generate revenues.

More on VKTX’s Q2 Earnings

Research and development (R&D) expenses amounted to $60.2 million, compared with $23.8 million incurred in the year-ago period. This significant increase was primarily due to higher costs associated with clinical studies and manufacturing for the company’s drug candidates, as well as increased employee-related expenses.

General and administrative expenses amounted to $14.4 million, up 40% year over year, primarily due to higher employee-related expenses.

Shares of VKTX were down 8% in after-market trading yesterday, likely due to a wider-than-expected loss incurred in the quarter on higher operating expenses.

The stock has outperformed the industry so far this year, as seen in the chart below.

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Image Source: Zacks Investment Research

As of June 30, 2025, Viking Therapeutics had cash, cash equivalents and short-term investments worth $808 million compared with $852 million as of March 31, 2025.

2025 Guidance

While Viking did not provide hard numbers, it indicated on the conference call that R&D expenses are expected to rise sequentially by approximately 25% to one-third in the third and fourth quarters of 2025 compared with the second quarter.

VKTX’s Pipeline Updates

Viking Therapeutics is one of the few biotech stocks that has shown immense potential in the obesity space. It is developing VK2735, an investigational novel dual GLP-1 and GIP receptor agonist, in different clinical studies as oral and subcutaneous (SC) versions for treating obesity.

Last month, Viking Therapeutics started the phase III VANQUISH program to evaluate VK2735 SC in adult patients with or without type II diabetes (T2D) for 78 weeks. The program consists of two late-stage studies — the VANQUISH-1 study will enroll obese adults with at least one weight-related co-morbid condition, while the VANQUISH-2 study will enroll obese or overweight adults with T2D. VKTX is targeting enrollment of about 4,500 participants for the VANQUISH-1 study and around 1,100 for the VANQUISH-2 study.

Viking is also evaluating the oral formulation of VK2735 in the ongoing phase II VENTURE-Oral Dosing study, which spans over 13 weeks. Data from this study is expected before this year’s end.

Additionally, the company reiterated plans to file an investigational new drug application with the FDA in the fourth quarter of 2025 to advance an internally developed amylin agonist program to clinical development for treating obesity.

VKTX’s Zacks Rank

Viking currently carries a Zacks Rank #3 (Hold).

Our Key Picks Among Biotech Stocks

Some better-ranked stocks from the sector are Akero Therapeutics (AKRO - Free Report) , Amarin Corporation (AMRN - Free Report) and Agenus (AGEN - Free Report) . While AMRN and AKRO sport a Zacks Rank #1 (Strong Buy) each at present, AGEN carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 90 days, loss per share estimates for Akero’s 2025 have improved from $4.08 to $3.93. Loss per share estimates for 2026 have narrowed from $4.30 to $4.27 during the same period. AKRO stock has surged 86% year to date.

Akero’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 48.90%.

In the past 90 days, loss per share estimates for Amarin’s 2025 have improved from $4.60 to $2.30. Loss per share estimates for 2026 have narrowed from $3.87 to $1.50 during the same period. AMRN stock has surged 61% year to date.

Amarin’s earnings beat estimates in two of the trailing four quarters, met the mark once and missed the mark on another occasion, delivering an average surprise of 29.11%.

In the past 90 days, Agenus’ bottom-line estimates for 2025 have significantly improved from a loss of $3.46 per share to earnings of $1.56. During the same timeframe, estimates for 2026 loss per share have narrowed from $3.91 to $1.99. AGEN stock has soared 122% so far this year.

Agenus’ earnings beat estimates in two of the trailing four quarters and missed the mark on the other two occasions, delivering an average negative surprise of 22.71%.

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