Viking Therapeutics (VKTX) Is Down 9.3% After Phase 3 Trial Milestone and Rising Losses - Has The Bull Case Changed?

• Viking Therapeutics recently completed patient enrollment in its Phase 3 VANQUISH-1 trial for VK2735, a dual GLP-1/GIP agonist under development for metabolic disorders, while reporting a wider-than-expected third-quarter loss due to increased research and development expenses and having no approved products or revenue as of this quarter.
• This combination of clinical progress and deepening financial losses has shifted analyst estimates and led to a more cautious investor outlook.
• We’ll explore how higher R&D costs and the company’s lack of revenue are shaping Viking Therapeutics’ investment narrative.

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What Is Viking Therapeutics' Investment Narrative?

To be a shareholder in Viking Therapeutics, you have to believe in the outsized potential of its pipeline, particularly the lead obesity treatment VK2735, but also accept the high risk that comes from a total absence of current revenue and reliance on future drug approvals. The just-completed enrollment for the Phase 3 VANQUISH-1 trial is an important milestone, reinforcing short-term catalysts centered on trial readouts and regulatory progression. However, the news doesn’t immediately change the core challenge: deepening quarterly losses and increased R&D spend with no FDA-approved products or commercialization in sight. The cautious investor sentiment and recent analyst downgrades largely reflect this enduring cash burn risk, which remains prominent unless positive, value-creating data arrive soon. While the trial update is constructive, near-term risks, chiefly ongoing losses and the funding gap before any potential drug approval, remain front and center for now. On the flip side, persistent losses and no clear revenue timeline remain key issues investors need to watch.

In light of our recent valuation report, it seems possible that Viking Therapeutics is trading beyond its estimated value.

Exploring Other Perspectives

Twenty-four private investors in the Simply Wall St Community estimate Viking’s fair value as anywhere from US$9.34 to US$93.39 per share. This wide spectrum underscores the company’s uncertain outlook, especially with continued cash burn and no approved products yet. Explore these varying perspectives to gauge the debates shaping Viking’s future.

Explore 24 other fair value estimates on Viking Therapeutics - why the stock might be worth over 2x more than 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.

• A great starting point for your Viking Therapeutics research is our analysis highlighting 4 important warning signs that could impact your investment decision.
• Our free Viking Therapeutics research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Viking Therapeutics' overall financial health at a glance.

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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.

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