Viking Therapeutics VKTX 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.
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 Amicus Therapeutics FOLD, Castle Biosciences CSTL and Fate Therapeutics FATE, 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%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amicus Therapeutics, Inc. (FOLD): Free Stock Analysis Report
Fate Therapeutics, Inc. (FATE): Free Stock Analysis Report
Viking Therapeutics, Inc. (VKTX): Free Stock Analysis Report
Castle Biosciences, Inc. (CSTL): Free Stock Analysis Report