Viking Therapeutics (VKTX 0.77%), a promising player in the biopharmaceutical industry, released its first-quarter report on April 24, and topped analysts' expectations on the earnings front. While it was expected to report a loss of $0.28 per share, its actual loss was just $0.26 per share. This period also included significant progress in its clinical development endeavors.
| Metric | Q1 2024 Result | Q1 2024 Analyst Estimate | Q1 2023 Result | % Change YOY |
|---|---|---|---|---|
| Earnings (loss) per share | ($0.26) | ($0.28) | ($0.25) | N/A |
| Research and development (R&D) spending | $24.1 million | N/A | $11.0 million | 119% |
| General and administrative (G&A) spending | $10.0 million | N/A | $9.5 million | 5% |
About Viking Therapeutics
Viking Therapeutics is a clinical-stage biopharmaceutical company dedicated to developing novel, first-in-class therapies for metabolic and endocrine disorders. Its lead product candidates, VK2809 and VK2735, aim to address the significant needs in the treatment of conditions such as non-alcoholic steatohepatitis (NASH) and obesity -- both widespread health issues.
The company's recent efforts have largely revolved around advancing its drug candidates through clinical trials -- hopefully, en route to the regulatory approval and commercialization of those candidates.
Quarter highlights
Viking's first quarter was marked by key advancements and strategic achievements. Notably, VK2735 demonstrated exceptional results as an obesity treatment in its phase 2 VENTURE study, achieving primary and secondary endpoints with up to 13.1% placebo-adjusted weight loss at 13 weeks. Additionally, noteworthy advancements in the VK2809 program for NASH and fibrosis are anticipated; those clinical trial results are expected to be announced in the second quarter.
An equally significant event during the quarter occurred on the financial front. Viking conducted a successful secondary stock offering that raised around $630 million, significantly boosting its cash reserves as of March 31 to about $963 million from the $362 million it held at the end of 2023. Given that its net loss for the quarter was $27.4 million, the company's balance sheet looks robust enough to carry it though its upcoming clinical and operational milestones.
Its rising R&D and G&A expenses, though indicative of Viking's intense research activities and operational expansion, contributed to the net loss. However, the fact that its net loss was smaller than forecast reflects better-than-anticipated operational efficiencies.
Looking ahead
Management expressed optimism about the company's trajectory. With a solid cash reserve and promising data from early studies, its focus naturally remains on advancing its clinical pipeline. The upcoming results from the VOYAGE study of VK2809 could significantly influence Viking's strategic direction and market positioning.
Shareholders and those considering investing in Viking are encouraged to closely monitor the progression of these trials and the company's efforts to navigate its candidates through the regulatory submission process. While it is today a pre-revenue company, successes with VK2809 or VK2735 could help transform it into a key player in its targeted therapeutic arenas.
