How the Launch of Phase III VK2735 for Obesity and Diabetes Has Changed Viking Therapeutics’ (VKTX) Investment Story

Simply Wall St
  • Viking Therapeutics recently reported second quarter results, highlighting a net loss of US$65.56 million and announcing the initiation of its VANQUISH Phase III registration program for VK2735 in obesity and type 2 diabetes, with additional pipeline updates and clinical milestones expected later this year.
  • The company's advancements in obesity and diabetes drug development drew notable positive sentiment from several analysts, who collectively expressed continued support for Viking’s evolving clinical pipeline.
  • We’ll explore how the launch of the Phase III VK2735 program shapes Viking’s investment narrative within the competitive metabolic disease space.

This technology could replace computers: discover 26 stocks that are working to make quantum computing a reality.

What Is Viking Therapeutics' Investment Narrative?

An investor in Viking Therapeutics needs to have conviction in the company's ability to turn scientific progress in its pipeline into commercial success, particularly in the competitive fields of obesity and type 2 diabetes. The initiation of the VANQUISH Phase III program for VK2735 is a key short-term catalyst, signaling that Viking is advancing closer to pivotal trial data that could set the stage for regulatory submissions. While the recent quarterly results showed a wider net loss, US$65.56 million for Q2 2025, this is not unexpected for a biotech in late-stage development, and recent price movement suggests the market may have already accounted for ongoing R&D spending. Attention now sharpens on near-term clinical milestones that, if positive, could offset cash burn concerns and provide fresh momentum. However, the reliance on trial outcomes and lack of revenue remain the biggest risks, and negative data or regulatory setbacks could sharply alter the investment case.

Still, it’s important to consider what failure in late-stage trials could mean for the share price.

Our comprehensive valuation report raises the possibility that Viking Therapeutics is priced higher than what may be justified by its financials.

Exploring Other Perspectives

VKTX Community Fair Values as at Jul 2025
Nineteen different fair value estimates from the Simply Wall St Community stretch from US$9.00 to nearly US$90.00 per share. Against this very large range of forecasts, the immediate focus remains on upcoming trial results, where outcomes could quickly sway confidence and valuation. Explore how your own view compares to the wider debate.

Explore 19 other fair value estimates on Viking Therapeutics - why the stock might be worth less than half the current price!

Build Your Own Viking Therapeutics Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

Seeking Other Investments?

Our top stock finds are flying under the radar-for now. Get in early:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Valuation is complex, but we're here to simplify it.

Discover if Viking Therapeutics might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com