Viking Therapeutics (VKTX) AI Stock Analysis

• Market Cap: $3.19B
• Dividend Yield: N/A
• Average Volume (3M): 4.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.78
• Revenue Growth: N/A
• EPS Growth: -23.84%
• Country: US
• Employees: 45
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.41
• Shares Outstanding: 112,309,550
• 10 Day Avg. Volume: 3,218,922
• 30 Day Avg. Volume: 4,438,749
• PEG Ratio: 1.61
• Price to Book (P/B): 3.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -23.09
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 3.51K
• Enterprise Value/Gross Profit: -18.87K
• Enterprise Value/Ebitda: -5.26
• 1Y Price Target: $88.47
• Price Target Upside: 221.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

Viking Therapeutics' overall score reflects the typical profile of an early-stage biotech company. Strengths include a robust balance sheet and promising clinical trial results, but these are offset by high operational losses and cash burn. Technical indicators suggest short-term positive momentum, yet valuation concerns persist due to the absence of profitability. The earnings call provided a positive outlook with significant pipeline advancements.

Positive Factors

Efficacy and Market Potential

VK2735 is considered incrementally better than tirzepatide, offering improved potency and pharmacokinetics, which could enhance its market potential.

Financial Resources

Viking Therapeutics has a strong cash position of $852M, which is expected to be sufficient to fund its Phase 3 study for injectable VK2735 and the Phase 2 oral study.

Market Share

For general obesity, VK2735 is expected to take meaningful market share by being more effective than current treatments.

Trial Progress

The Phase 2 study for the oral VK2735 is fully enrolled, indicating high interest in GLP-1 related therapies and a competitive edge for Viking Therapeutics.

Negative Factors

Market Competition

The company's dual amylin and calcitonin program is advancing, and there is ongoing exploration for partnerships in other therapeutic areas, signaling competitive pressure.

Mergers and Acquisitions

There is a perception that the supply agreement with CordenPharma reduces the likelihood of near-term mergers and acquisitions.

Viking Therapeutics Business Overview & Revenue Model

Company Description

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; 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.

How the Company Makes Money

Viking Therapeutics makes money primarily through the development and potential commercialization of its drug candidates. The company generates revenue through strategic partnerships, collaborations, and licensing agreements with other pharmaceutical companies. These partnerships may involve upfront payments, milestone payments, and royalties based on the success and commercialization of its drug candidates. Currently, Viking Therapeutics does not have commercialized products on the market, so its revenue largely depends on funding from investors and partnerships with other companies in the biopharmaceutical industry.

Viking Therapeutics Financial Statement Overview

Summary

Viking Therapeutics has a strong balance sheet with low leverage, but significant operational losses and negative cash flow due to high R&D expenses. The company is in a pre-revenue stage, typical for biotech firms, and relies heavily on equity financing.

Income Statement

Viking Therapeutics shows consistent operational losses with no revenue generation, as expected in early-stage biotech companies. The continuous increase in EBIT and net losses over the years reflects high R&D and operational expenses without offsetting revenue. The absence of revenue growth remains a significant concern.

Balance Sheet

The company maintains a strong equity position with minimal debt, evidenced by a high equity ratio and low debt-to-equity ratio. However, the decreasing cash reserves, despite high stockholder equity, indicate potential future liquidity challenges if revenue generation doesn't commence.

Cash Flow

Operating cash flows are negative, reflecting the company's investment in R&D activities. The high financing cash flow in recent years suggests dependence on external funding. While free cash flow is negative, the company has managed substantial financing inflows, indicating investor confidence.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-162.00K	0.00	-292.00K	-291.00K	-296.00K	-277.00K
	EBIT
-172.32M	-150.92M	-100.83M	-70.36M	-55.68M	-42.66M
	EBITDA
-172.21M	-109.52M	-100.83M	-70.36M	-55.39M	-42.66M
	Net Income Common Stockholders
-128.24M	-109.96M	-85.89M	-67.38M	-54.00M	-36.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
962.98M	902.61M	362.08M	155.49M	202.10M	248.39M
	Total Assets
967.52M	908.32M	368.49M	168.53M	210.66M	256.50M
	Total Debt
1.18M	1.12M	1.26M	1.56M	29.00K	359.00K
	Net Debt
-194.40M	-25.56M	-54.26M	-35.07M	-26.34M	-28.76M
	Total Liabilities
33.63M	28.04M	20.07M	23.21M	8.78M	12.16M
	Stockholders Equity
933.89M	880.28M	348.42M	145.32M	201.88M	244.34M
Cash Flow		Free Cash Flow
-133.99M	-87.79M	-73.38M	-48.40M	-47.59M	-21.78M
	Operating Cash Flow
-133.99M	-87.79M	-73.38M	-48.40M	-47.59M	-21.78M
	Investing Cash Flow
-30.33M	-553.37M	-179.09M	54.75M	37.96M	41.57M
	Financing Cash Flow
6.78M	612.46M	271.38M	4.16M	6.88M	950.00K

Viking Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VKTX, the sentiment is Negative. The current price of 27.5 is above the 20-day moving average (MA) of 27.40, above the 50-day MA of 26.45, and below the 200-day MA of 44.79, indicating a neutral trend. The MACD of 0.50 indicates Positive momentum. The RSI at 52.02 is Neutral, neither overbought nor oversold. The STOCH value of 55.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VKTX.

Viking Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	79 Outperform	$3.73B	16.21	37.24%	―	22.42%	―
VKTX	53 Neutral	$3.19B	―	-14.40%	―	―	-23.84%
Sector *	52 Neutral	$5.19B	3.04	-44.64%	2.82%	16.45%	-0.53%
APLS	50 Neutral	$2.19B	―	-103.82%	―	48.04%	48.16%
SRRK	50 Neutral	$2.90B	―	-106.71%	―	―	-22.34%
CRNX	46 Neutral	$2.93B	―	-30.84%	―	―	-1.20%
IMVT	45 Neutral	$2.46B	―	-74.17%	―	―	-43.10%

Viking Therapeutics Corporate Events

Viking Therapeutics’ Promising Results for Obesity Treatment

Viking Therapeutics has presented promising data from its VK2735 obesity program at ObesityWeek® 2024, showcasing up to 8.2% weight loss from baseline with an oral formulation over 28 days. The treatment demonstrated strong tolerability, with mild GI-related side effects, and the potential for longer-term weight loss. These findings are significant for those exploring innovative solutions in metabolic disorder treatments, with both oral and subcutaneous forms of VK2735 showing durable effects.