Viking Therapeutics (VKTX) Q2 2024 earnings summary

Executive summary

• Positive phase II VENTURE trial results for VK2735 in obesity, showing up to 14.7% mean body weight reduction over 13 weeks, with strong safety and tolerability profile.

• Phase I oral VK2735 demonstrated dose-dependent weight loss up to 5.3% over 28 days, with excellent tolerability; phase II trial to initiate in Q4 2024.

• VK2809 achieved significant improvements in NASH resolution and fibrosis in phase IIb VOYAGE trial, with up to 75% resolution rates and favorable safety after 52 weeks.

• Preclinical dual amylin/calcitonin receptor agonists showed up to 10% weight loss in animal models; clinical development planned for 2025.

• Strong cash position of $942M at quarter-end, significantly strengthened by a $597.1M public offering in March 2024.

Financial highlights

• Q2 2024 net loss was $22.3M ($0.20/share) vs. $19.2M ($0.19/share) in Q2 2023; six-month net loss was $49.6M ($0.46/share) vs. $38.8M ($0.44/share) in 2023.

• Q2 2024 R&D expenses were $23.8M, up from $13.9M in Q2 2023, driven by increased clinical and manufacturing activities.

• Q2 2024 G&A expenses were $10.3M, up from $9.8M year-over-year, mainly due to higher stock-based compensation and consulting.

• Interest income increased to $11.8M in Q2 2024 from $4.5M in Q2 2023, reflecting higher cash and investment balances.

• Cash, cash equivalents, and short-term investments totaled $942M as of June 30, 2024, up from $362M at year-end 2023.

Outlook and guidance

• Phase III development for VK2735 in obesity planned, with end-of-phase II FDA meeting expected in Q4 2024.

• Oral VK2735 phase II trial in obesity to initiate in Q4 2024; further dose escalation data to be presented at ObesityWeek.

• End-of-phase II meeting for VK2809 in NASH planned for Q4 2024 to discuss registration path.

• VK0214 phase Ib in X-ALD completed enrollment; top-line results expected later in 2024.

• Amylin/calcitonin dual agonist program to enter clinical trials in 2025.