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Viking (VKTX) Q2 Earnings Beat, Stock Up on Pipeline Updates
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Viking Therapeutics (VKTX - Free Report) reported second-quarter 2024 loss per share of 20 cents, narrower than the Zacks Consensus Estimate of a loss of 26 cents. The company had incurred a loss of 19 cents per share in the year-ago quarter.
Currently, Viking does not have any approved products in its portfolio. As a result, it is yet to generate revenues.
Quarter in Detail
Research and development expenses were $23.8 million in the reported quarter, up 70.8% year over year. The massive uptick was mainly due to increased manufacturing expenses for the company’s drug candidates, along with expenses incurred to support clinical activities.
General and administrative expenses were $10.3 million, up 4.7% on a year-over-year basis, primarily due to higher employee-related expenses as well as benefits and services provided by third-party consultants. However, such expenses were partially offset by a decrease in legal and patent fees.
As of Jun 30, 2024, Viking had cash, cash equivalents and short-term investments worth $942 million compared with $963 million as of Mar 31, 2024.
Year to date, shares of VKTX have skyrocketed 170.9% against the industry’s 2.2% decline.
Image Source: Zacks Investment Research
Pipeline Updates
Earlier this year, Viking reported that it has met the primary endpoint, with statistical significance, in the phase II VENTURE study of VK2735 (subcutaneously administered), demonstrating reductions in mean body weight up to approximately 15% from baseline, following 13 weeks of dosing. The study also met all secondary endpoints.
Following the encouraging news, in the second quarter of 2024, Viking received feedback from the FDA regarding the next steps in the developmental pathway for the investigational candidate. Based on such feedback, the company is gearing up to advance VK2735 into phase III development for obesity.
Per management, the company is scheduled to meet with the FDA later this year to discuss the planned phase III study design and timing.
Viking is simultaneously developing an oral formulation of VK2735 for the obesity indication, which is an easier-to-use formulation compared with injection-based therapy. During the first quarter, the company reported data from the early-stage study on the oral formulation, ranging from 2.5 mg to 40 mg dose strengths of the drug, which demonstrated promising dose-dependent reductions in mean body weight after 28 days of daily dosing.
Treatment with 80 mg and 100 mg doses of oral VK2735 is also ongoing in the study's dose-escalation portion. Results from these cohorts are expected to be reported later this year.
Per Viking, oral VK2735 holds the potential to be more beneficial when dosed over longer periods. Based on this notion, the company plans to initiate a 13-week phase II study of the candidate in obesity patients in the fourth quarter of 2024.
Apart from VK2735, the company also completed the phase IIb VOYAGE study, which is evaluating VK2809 as a potential treatment for patients with biopsy-confirmed non-alcoholic steatohepatitis (NASH). The study had earlier met its primary endpoint demonstrating statistically significant reductions in liver fat content (38-55%) in NASH patients over 12 weeks of treatment with VK2809 compared to placebo.
During the second quarter, the company announced meeting the secondary endpoints in the VOYAGE study as well, demonstrating that around 40% to 50% of patients who received VK2809 achieved NASH resolution and at least a one-stage improvement in fibrosis compared with 20% in the placebo group.
The company anticipates meeting with the FDA to discuss further steps in the NASH program in fourth-quarter 2024.
Viking is also evaluating another investigational candidate, VK0214, in an early-stage study to treat patients with adrenomyeloneuropathy.
Please note that the stock jumped 23.6% in after-market hours on Jul 24, driven by the positive pipeline updates from the company. VKTX is also gaining in the pre-market hours on Jul 25.
In the past 60 days, the Zacks Consensus Estimate for Annovis’ 2024 loss per share has remained constant at $2.46. During the same period, the consensus estimate for 2025 loss per share has narrowed from $1.95 to $1.91. Year to date, shares of ANVS have plunged 42.4%.
ANVS beat estimates in three of the trailing four quarters and missed once, delivering an average negative surprise of 1.39%.
In the past 60 days, estimates for ANI Pharmaceuticals 2024 earnings per share (EPS) have improved from $4.41 to $4.44. EPS estimates for 2025 have improved from $4.85 to $5.42. Year to date, shares of ANIP have jumped 14.7%.
ANIP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 53.90%.
In the past 60 days, estimates for RAPT Therapeutics’ 2024 loss per share have narrowed from $2.94 to $2.93. Loss per share estimates for 2025 have narrowed from $2.06 to $2.05. Year to date, shares of RAPT have plunged 87.3%.
RAPT’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 3.19%.
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Viking (VKTX) Q2 Earnings Beat, Stock Up on Pipeline Updates
Viking Therapeutics (VKTX - Free Report) reported second-quarter 2024 loss per share of 20 cents, narrower than the Zacks Consensus Estimate of a loss of 26 cents. The company had incurred a loss of 19 cents per share in the year-ago quarter.
Currently, Viking does not have any approved products in its portfolio. As a result, it is yet to generate revenues.
Quarter in Detail
Research and development expenses were $23.8 million in the reported quarter, up 70.8% year over year. The massive uptick was mainly due to increased manufacturing expenses for the company’s drug candidates, along with expenses incurred to support clinical activities.
General and administrative expenses were $10.3 million, up 4.7% on a year-over-year basis, primarily due to higher employee-related expenses as well as benefits and services provided by third-party consultants. However, such expenses were partially offset by a decrease in legal and patent fees.
As of Jun 30, 2024, Viking had cash, cash equivalents and short-term investments worth $942 million compared with $963 million as of Mar 31, 2024.
Year to date, shares of VKTX have skyrocketed 170.9% against the industry’s 2.2% decline.
Image Source: Zacks Investment Research
Pipeline Updates
Earlier this year, Viking reported that it has met the primary endpoint, with statistical significance, in the phase II VENTURE study of VK2735 (subcutaneously administered), demonstrating reductions in mean body weight up to approximately 15% from baseline, following 13 weeks of dosing. The study also met all secondary endpoints.
Following the encouraging news, in the second quarter of 2024, Viking received feedback from the FDA regarding the next steps in the developmental pathway for the investigational candidate. Based on such feedback, the company is gearing up to advance VK2735 into phase III development for obesity.
Per management, the company is scheduled to meet with the FDA later this year to discuss the planned phase III study design and timing.
Viking is simultaneously developing an oral formulation of VK2735 for the obesity indication, which is an easier-to-use formulation compared with injection-based therapy. During the first quarter, the company reported data from the early-stage study on the oral formulation, ranging from 2.5 mg to 40 mg dose strengths of the drug, which demonstrated promising dose-dependent reductions in mean body weight after 28 days of daily dosing.
Treatment with 80 mg and 100 mg doses of oral VK2735 is also ongoing in the study's dose-escalation portion. Results from these cohorts are expected to be reported later this year.
Per Viking, oral VK2735 holds the potential to be more beneficial when dosed over longer periods. Based on this notion, the company plans to initiate a 13-week phase II study of the candidate in obesity patients in the fourth quarter of 2024.
Apart from VK2735, the company also completed the phase IIb VOYAGE study, which is evaluating VK2809 as a potential treatment for patients with biopsy-confirmed non-alcoholic steatohepatitis (NASH). The study had earlier met its primary endpoint demonstrating statistically significant reductions in liver fat content (38-55%) in NASH patients over 12 weeks of treatment with VK2809 compared to placebo.
During the second quarter, the company announced meeting the secondary endpoints in the VOYAGE study as well, demonstrating that around 40% to 50% of patients who received VK2809 achieved NASH resolution and at least a one-stage improvement in fibrosis compared with 20% in the placebo group.
The company anticipates meeting with the FDA to discuss further steps in the NASH program in fourth-quarter 2024.
Viking is also evaluating another investigational candidate, VK0214, in an early-stage study to treat patients with adrenomyeloneuropathy.
Please note that the stock jumped 23.6% in after-market hours on Jul 24, driven by the positive pipeline updates from the company. VKTX is also gaining in the pre-market hours on Jul 25.
Viking Therapeutics, Inc. Price and Consensus
Viking Therapeutics, Inc. price-consensus-chart | Viking Therapeutics, Inc. Quote
Zacks Rank & Stocks to Consider
Viking currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Annovis Bio (ANVS - Free Report) , ANI Pharmaceuticals, Inc. (ANIP - Free Report) and RAPT Therapeutics, Inc. (RAPT - Free Report) . While ANVS sports a Zacks Rank #1 (Strong Buy), ANIP and RAPT carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, the Zacks Consensus Estimate for Annovis’ 2024 loss per share has remained constant at $2.46. During the same period, the consensus estimate for 2025 loss per share has narrowed from $1.95 to $1.91. Year to date, shares of ANVS have plunged 42.4%.
ANVS beat estimates in three of the trailing four quarters and missed once, delivering an average negative surprise of 1.39%.
In the past 60 days, estimates for ANI Pharmaceuticals 2024 earnings per share (EPS) have improved from $4.41 to $4.44. EPS estimates for 2025 have improved from $4.85 to $5.42. Year to date, shares of ANIP have jumped 14.7%.
ANIP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 53.90%.
In the past 60 days, estimates for RAPT Therapeutics’ 2024 loss per share have narrowed from $2.94 to $2.93. Loss per share estimates for 2025 have narrowed from $2.06 to $2.05. Year to date, shares of RAPT have plunged 87.3%.
RAPT’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 3.19%.