Viking Therapeutics Q3 2024 Financial Results

On October 23, 2024, Viking Therapeutics (NASDAQ: VKTX) reported its financial results for the third quarter of 2024 and provided updates on its clinical programs. The company's President and CEO, Brian Lian, along with CFO Greg Zante, discussed the highlights of the quarter, which included a net loss of $24.9 million and advancements in several clinical trials. Viking Therapeutics emphasized its strong cash position, boasting $930 million in cash and equivalents, alongside strategic plans for upcoming trials for its therapeutic candidates.

Key Takeaways

• Viking reported a Q3 2024 net loss of $24.9 million ($0.22 per share).
• R&D expenses rose to $22.8 million, and general and administrative expenses increased to $13.8 million.
• Cash and equivalents totaled $930 million as of September 30, 2024.
• Positive clinical trial data were announced for VK2735 and VK2809, with plans for VK2735 to move into Phase 3.
• A Phase 2 obesity study for VK2735 is set to start, with preparations for an FDA end-of-Phase 2 meeting underway.
• The company is expanding its staff for the Phase 3 trial and securing drug supply with global peptide suppliers.

Company Outlook

• Viking is gearing up for Phase 3 development of VK2735, while also exploring new dosing regimens.
• Collaboration with larger pharmaceutical partners for the NASH (non-alcoholic steatohepatitis) program is being considered.

Bearish Highlights

• Net losses increased for both the quarterly and nine-month periods compared to the prior year.
• Significant rises in R&D and general administrative expenses were noted.

Bullish Highlights

• The robust cash position allows Viking to progress its clinical objectives effectively.
• Positive clinical trial results bolster Viking's confidence in VK2735 and VK2809, particularly for Phase 3 development.

Misses

• No specific financial misses were reported during the earnings call.

Q&A Highlights

• Monthly dosing for VK2735 is likely a standalone trial, separate from the Phase 3 program.
• Transition to auto-injectors for VK2735 and securing necessary materials is planned.
• Higher doses for VK2735 are being considered for Phase 2, with optimism surrounding the amylin mechanism's impact on weight-loss programs.
• Future steps for the X-ALD (X-linked adrenoleukodystrophy) program and NASH collaborations are contingent on FDA feedback and additional data.

Viking Therapeutics' Q3 financial results indicate a strategic investment in advancing the company’s pipeline, with increased expenses focused on clinical progress. The solid financial standing supports ambitious R&D initiatives, with multiple candidates showing promise and clear future plans in place. Investors can look forward to further updates as Viking continues its clinical advancement journey.

InvestingPro Insights

Viking Therapeutics’ recent results and clinical advancements have yielded insights suggesting a strong financial position with $930 million in cash as of September 30, 2024. An InvestingPro Tip highlights that Viking "holds more cash than debt," crucial for funding its ambitious programs, including the Phase 3 advancement of VK2735. Despite recent net losses, the year-to-date price return indicates significant investor confidence. Investors can access additional tips from InvestingPro for a comprehensive analysis of Viking Therapeutics' financial health and market stance.

Full Transcript Breakdown

Operator's Introduction

Operator: Welcome to the Viking Therapeutics Third Quarter 2024 Financial Results Conference Call. All parties are in listen-only mode now…

Management's Comments

Stephanie Diaz: Thank you all for joining today. Let's hear from Brian Lian and Greg Zante about the financial results…
–Detailed Commentary by Brian Lian and Greg Zante about financials and ongoing clinical trials–
Brian Lian: We've achieved positive data across multiple programs this year, and we remain committed to advancing our pipeline…

Conclusion

Stephanie Diaz: Thank you for participating. We look forward to future updates from Viking Therapeutics…