Viking Therapeutics Q3 Earnings Call Highlights

Key Points

• Viking Therapeutics reported sharply higher losses as it increased investment in late-stage obesity programs, with a third-quarter net loss of $183.2 million versus $90.8 million a year earlier. The company ended the quarter with $960 million in cash, aided by roughly $550 million from stock and convertible-note offerings.
• The phase III VANQUISH trials for weekly injectable VK2735 are fully enrolled, while the SUNRISE phase III program for daily oral VK2735 has begun. Both programs are evaluating the drug in people with obesity, including those with Type 2 diabetes.
• Maintenance-study data showed participants retained most of their weight loss after switching from weekly VK2735 to every-other-week or monthly dosing. Viking also plans to advance its VK3019 amylin program and is building commercial infrastructure ahead of a potential VK2735 launch.

Viking Therapeutics NASDAQ: VKTX reported a wider third-quarter loss as it increased spending on late-stage obesity programs, while advancing phase III studies of both injectable and oral versions of its lead candidate, VK2735.

The company reported a net loss of $183.2 million, or $1.55 per share, for the quarter ended Sept. 30, compared with a loss of $90.8 million, or $0.81 per share, a year earlier. Research and development expense rose to $166.8 million from $90 million, primarily reflecting clinical-study costs, manufacturing, stock-based compensation, employee costs and consultants. General and administrative expense increased to $20.3 million from $8.6 million.

For the first nine months of 2026, Viking reported a net loss of $469.5 million, or $4.03 per share, compared with $202 million, or $1.80 per share, in the prior-year period.

Viking ended the quarter with $960 million in cash, cash equivalents and short-term investments, up from $706 million at the end of 2025. The balance included about $550 million in net proceeds from concurrent stock and convertible-note offerings completed during the quarter. President and Chief Executive Officer Brian Lian said the financing would support ongoing development, commercial preparation and potential launch plans for VK2735.

Phase III Programs Advance

VK2735 is a dual GLP-1 and GIP receptor agonist being developed in injectable and oral formulations for obesity. Viking said its phase III VANQUISH program for once-weekly subcutaneous VK2735 remains on track. Both VANQUISH-1, in adults with obesity, and VANQUISH-2, in adults with obesity and Type 2 diabetes, are fully enrolled.

The randomized, double-blind, placebo-controlled studies are evaluating weekly doses of 7.5 milligrams, 12.5 milligrams and 17.5 milligrams over 78 weeks. The primary endpoint is the percentage change in body weight from baseline versus placebo. Viking expects the first patients to enter extension periods in early 2027.

Lian said blinded discontinuation rates in VANQUISH are tracking with the company’s expectations. He declined to project the eventual weight-loss results from the phase III trials, saying it was too early to extrapolate from earlier data.

Earlier in October, Viking began its SUNRISE phase III registration program for oral VK2735. SUNRISE-1 is studying adults with obesity and at least one weight-related comorbidity, while SUNRISE-2 is enrolling adults with obesity and Type 2 diabetes. Both studies will compare daily oral doses of 27.5 milligrams, 35 milligrams and 55 milligrams with placebo over 68 weeks.

The oral program uses four-week titration blocks. Lian said the 27.5-milligram regimen begins at 10 milligrams for four weeks, followed by 17.5 milligrams for four weeks, before participants remain at 27.5 milligrams for 60 weeks. The highest-dose regimen reaches 55 milligrams after four titration steps and remains there for 52 weeks.

Management said the selected oral dose range was intended to reduce tablet burden while supporting economic viability and potential gross margins. Lian also said Viking is satisfied with early SUNRISE enrollment, though he characterized the program as being in its early stages. Chief Medical Officer Hubert Chen said there is overlap between VANQUISH and SUNRISE sites, particularly among sites that have performed well, but said the company does not anticipate enrollment concerns.

Maintenance-Dosing Results

Viking also highlighted results from the first part of a maintenance-dosing study of subcutaneous VK2735. The study included a 21-week induction period of weekly dosing, followed by a 12-week maintenance period evaluating every-other-week and monthly regimens.

During induction, participants receiving VK2735 had weight loss ranging from about 16% to 19% at week 21, compared with about 0% for placebo. Ninety percent of treated participants achieved at least 10% weight loss, and roughly one-third achieved 20% weight loss, according to the company.

An exploratory group that remained on 17.5 milligrams weekly for 33 weeks achieved average weight loss of approximately 22% from baseline, with no plateau observed, Viking said.

• Participants transitioned to every-other-week dosing retained 83% to 97% of their weight loss at week 33, compared with 61% among participants moved from weekly 17.5-milligram dosing to placebo.
• Those transitioned to monthly dosing retained 82% to 90% of lost weight, also compared with 61% for the placebo-transition group.
• During the maintenance period, treatment-emergent adverse events and rates of nausea, vomiting, diarrhea and constipation were not meaningfully different from placebo, Viking said.

The company has begun a second portion of the maintenance study, which will evaluate daily oral regimens along with additional every-other-week and monthly injectable regimens. All participants will first receive weekly subcutaneous VK2735 for 21 weeks before moving to maintenance options. Results are expected in 2027.

Lian said the oral maintenance portion will assess doses ranging from about 17 milligrams to 55 milligrams daily and would not exceed the highest dose being tested in the SUNRISE registration program. He said Viking opted not to study weekly oral maintenance dosing because single-dose oral exposure variability is relatively high.

Amylin Program and Commercial Preparation

Beyond VK2735, Viking is conducting a phase I single-ascending-dose study of VK3019, an amylin and calcitonin receptor agonist. The company expects to complete that trial by year-end and begin a multiple-ascending-dose study in the first quarter of 2027.

Lian said the company may disclose results from the single-dose study if there are notable findings, though he expects the planned four-week multiple-dose study to provide more informative data. Viking sees potential for VK3019 as a standalone therapy, for people who may not tolerate or respond to GLP-1 therapies, and potentially in combination with VK2735.

Meanwhile, Viking is adding commercial infrastructure ahead of a potential launch. Lian said the company has hired commercial, market-access, medical-affairs, health-economics and medical-science-liaison leadership, while also expanding technical operations, manufacturing, supply-chain, quality and compliance functions.

Chief Financial Officer Greg Zante said the company expects average cash usage of roughly $100 million per quarter going forward, although spending may vary by quarter. He said near-term general and administrative spending should remain relatively flat, with a larger increase more likely as commercialization approaches.

About Viking Therapeutics (NASDAQ:VKTX)

Viking Therapeutics, Inc is a clinical-stage biopharmaceutical company headquartered in San Diego, California. Founded in 2012, the company develops therapies for metabolic and endocrine disorders, with a focus on conditions involving obesity, nonalcoholic steatohepatitis (NASH), and other liver and lipid disorders.

Viking's lead program is VK2735, an investigational dual GLP-1/GIP receptor agonist being developed in injectable and oral formulations for obesity and related metabolic conditions.

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