Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 20 Aug, 25 | VKTX | Buy | USD 24.36 | USD 25.5 | USD 26.5 | Same day | Closed |
9.69%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Viking Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development of novel therapies for metabolic and endocrine disorders. The company's lead drug candidate is VK2809, an orally available tissue and receptor-subtype selective agonist of the thyroid hormone receptor beta (TRß), which is in Phase IIb clinical trials to treat patients with biopsy-confirmed non-alcoholic steatohepatitis, as well as NAFLD. It also develops VK5211, an orally available non-steroidal selective androgen receptor modulator that is in Phase II clinical trials for the treatment of patients recovering from non-elective hip fracture surgery; VK0612, an orally available Phase IIb-ready drug candidate for type 2 diabetes; VK2735, a novel dual agonist of the glucagon-like peptide, which is in Phase 1 SAD/MAD clinical trial, and VK0214, an orally available tissue and receptor-subtype selective agonist of the TRß for X-linked adrenoleukodystrophy. The company was incorporated in 2012 and is headquartered in San Diego, California.
Strong Liquidity Position: Cash reserves stood at USD 808 million in Q2FY25, compared to USD 903 million at FY24 year-end, ensuring adequate runway to fund Phase 3 programs and other pipeline initiatives.
Rapid Clinical Trial Enrollment: Enrollment of ~280 patients in the Phase 2 VENTURE-Oral trial was completed ahead of schedule, reflecting strong demand and operational efficiency
Escalating R&D Expenses: Research and development spending surged to USD 60.2 million in Q2FY25, versus USD 23.8 million in Q2FY24, reflecting significantly higher clinical and manufacturing costs
Widening Net Loss: Net loss rose sharply to USD 65.6 million in Q2FY25, compared to USD 22.3 million in Q2FY24, marking a 194% year-over-year increase
Viking’s investment risk lies in its dependence on successful clinical outcomes for VK2735, as failure or delays in Phase 3 trials could materially impact financial stability given escalating R&D expenses and widening net losses
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 24.36 | 21.5 | 25.5 | 26.5 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Clinical Pipeline Advancement: Viking Therapeutics, Inc. reported notable clinical progress in the first half of 2025, particularly with its obesity treatment program VK2735. The company initiated its Phase 3 VANQUISH registration trials, comprising two large-scale studies: one in patients with obesity and another in patients with both obesity and type 2 diabetes. These randomized, double-blind, placebo-controlled trials will evaluate VK2735’s efficacy and safety over 78 weeks. The primary endpoint will assess percentage change in body weight, with secondary measures examining weight-loss milestones and tolerability.
Progress in Oral VK2735 Program: Alongside the subcutaneous formulation, Viking continued advancing the oral tablet version of VK2735. The company successfully completed enrollment in its Phase 2 VENTURE-Oral Dosing trial, which enrolled approximately 280 patients with obesity or overweight conditions. Top-line results are expected in the second half of 2025. Earlier Phase 1 data indicated dose-dependent reductions in mean body weight, reaching up to 8.2% after 28 days, with an encouraging safety profile.
Expansion of Amylin-Based Therapies: The company also reported progress on its dual amylin and calcitonin receptor agonist (DACRA) program. Preclinical data presented in 2024 demonstrated reductions in food intake and improvements in metabolic profile in animal models. Viking expects to submit an Investigational New Drug (IND) application for this program in the fourth quarter of 2025, positioning it as another potential therapeutic option in obesity management.
Financial Performance – Second Quarter 2025: For the quarter ended June 30, 2025, Viking reported research and development expenses of USD 60.2 million, a significant increase from USD 23.8 million in the same quarter of 2024. General and administrative expenses also rose to USD 14.4 million, compared to USD 10.3 million a year earlier. Consequently, the net loss widened to USD 65.6 million, or USD 0.58 per share, compared with a net loss of USD 22.3 million, or USD 0.20 per share, in Q2 2024. The increase in losses was attributed mainly to higher clinical development costs, manufacturing activities, and personnel expenses.
Financial Performance – First Half 2025: For the six months ended June 30, 2025, Viking’s research and development expenses totaled USD 101.5 million, up from USD 47.9 million in the prior-year period. General and administrative costs rose to USD 28.5 million from USD 20.3 million. As a result, the company reported a net loss of USD 111.2 million, or USD 0.99 per share, compared with USD 49.6 million, or USD 0.46 per share, in the first half of 2024. This increase was partly offset by higher interest income.
Balance Sheet Strength: Despite widening losses, Viking ended the second quarter with a robust cash position. As of June 30, 2025, the company held USD 808 million in cash, cash equivalents, and short-term investments, compared to USD 903 million at the end of December 2024. Management emphasized that this financial position provides sufficient runway to advance VK2735 through Phase 3 trials while also supporting progress in other key development programs.
Outlook and Investor Engagement: Looking ahead, Viking expects top-line results from the VENTURE-Oral trial in the second half of 2025 and an IND filing for its DACRA program by year-end. Additionally, management will present updates at several investor conferences, including those hosted by BTIG, Cantor, Morgan Stanley, Bernstein, and Stifel. The company reaffirmed its commitment to advancing differentiated therapies in obesity and metabolic disorders while maintaining financial flexibility.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Viking Therapeutics, Inc (NASDAQ: VKTX) at the closing market price of USD 24.36, as on August 19, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Biotechnology
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to EBITDA (x) | |
|---|---|---|---|---|---|---|---|---|
| VKTX Viking Therapeutics Inc |
-0.18 0.52% | 34.12 | - | - | - | 21.71 | -71.6401 | |
| NVO Novo Nordisk A/S |
-0.22 0.46% | 47.55 | 41.58 | 31.15 | 2.13 | 32.99 | 2.11 | 4.70 |
| NONOF Novo Nordisk A/S |
-0.05 0.10% | 47.83 | 41.06 | 31.25 | 2.08 | 33.11 | 2.11 | 4.70 |
| VRTX Vertex Pharmaceuticals Inc |
-2.95 0.66% | 446.57 | 29.67 | 24.33 | 10.38 | 5.83 | 9.33 | 20.00 |
| REGN Regeneron Pharmaceuticals Inc |
-4.77 0.64% | 745.02 | 29.07 | 20.12 | 7.57 | 3.82 | 6.95 | 19.42 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is Aug 19,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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