Viking Therapeutics (NasdaqCM:VKTX) Seals Manufacturing Deal as Stock Declines 11% Over The Past Month

Viking Therapeutics (NasdaqCM:VKTX) has experienced an 11% monthly decline in its stock price, a notable movement amid its recent announcements and a wider market downturn. The company completed the enrollment for its Phase 2 trial of VK2735, a dual agonist targeting obesity, and entered a significant manufacturing agreement with CordenPharma, focusing on securing long-term supply. Despite these advancements, market-wide apprehension over upcoming tariffs, coupled with a selloff impacting major indexes like the S&P 500 and Nasdaq, both enduring sharp monthly losses, may have influenced the downward trajectory of VKTX's share price over the specified period.

We've identified 5 risks for Viking Therapeutics (2 make us uncomfortable) that you should be aware of.

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Viking Therapeutics' shares have surged to deliver a very large total return over the three-year period, marking a striking performance among its peers in the biotech industry. Despite the recent year's underperformance relative to both the market and sector, this impressive return in a longer timeframe reflects the company's endeavors in product development and strong future promise. Viking's focus on innovative treatments, such as the VK2735 obesity program, has been crucial. In particular, its recent completion of Phase 2 trial enrollment and a multi-year manufacturing agreement with CordenPharma targets a significant market opportunity.

Noteworthy corporate activities have bolstered this growth narrative. For instance, the promising results from the VK2809 clinical trial for NASH and positive clinical data presentations on VK2735 signal strong pipeline advancements. Even as Viking reported a US$109.96 million net loss in 2024, these product-centric milestones have helped maintain investor confidence amidst the high volatility, positioning Viking favorably for potential future expansions in metabolic disorder treatments.

Insights from our recent valuation report point to the potential undervaluation of Viking Therapeutics shares in the market.

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