VKTX Stock Edges Higher In August Ahead Of Early-Stage Obesity-Drug Data Release In Q3

• Viking has said one of its trial results should arrive this quarter, which ends in September.
• The company also plans to start large late-stage trials of a pill form of VK2735 in the fourth quarter.
• According to data from Koyfin, 18 of the 20 analysts covering VKTX rate it Buy or higher.

Shares of Viking Therapeutics (VKTX) gained about 3% in August after a poor July, with investors waiting on early data from a study testing less-frequent and oral doses of its lead weight-loss drug VK2735.

The shares fell sharply in July amid a quiet stretch of news and questions about spending, as the company has no approved drugs and is developing medicines that help people lose weight.

Data Expected Soon

Investors are now awaiting results from an early-stage study of VK2735 testing different ways to keep weight off after an initial course of treatment. Patients first receive weekly shots, then switch to options such as monthly shots or oral pill regimens. Viking has said those results from certain arms of the study should arrive this quarter, which ends in September.

Viking also plans to start large late-stage trials of a pill form of VK2735 in the fourth quarter. The injection version is already in two late-stage studies that finished enrolling patients earlier this year. Those trials are moving ahead on schedule, though main results are not due until 2027. A successful pill could give the company a simpler option for patients who prefer not to use injections.

Pipeline And Finances

In June, the company began an early study of VK3019, a second weight-loss candidate that works in a different way. That program is still in its first stages.

Viking ended June with $502 million in cash, which it says should last into 2028.

According to data from Koyfin, 18 of the 20 analysts covering VKTX rate it Buy or higher while two rate it Hold. The 12-month average price target on the stock is $92.39, representing potential upside of 182% from the stock’s last close.

Earlier this month, Oppenheimer said investors are mainly watching the coming VK2735 study on less frequent shots and a pill for weight maintenance. The firm, however, said it is more interested in what else the drug could do. It sees room to move patients from injectable weight loss drugs like semaglutide or tirzepatide onto injectable VK2735, or from those shots onto oral VK2735. It also sees a path to combining VK2735 with VK2809 or VK3019 in a single pill.

Oppenheimer says the full set of options around VK2735 is a strong reason to own the stock. The firm rated the shares Outperform with a $100 price target.

How Did VKTX Retail Traders React?

On Stocktwits, retail sentiment around VKTX stayed within bullish territory over the past 24 hours, while message volume remained at normal levels.  

A Stocktwits user said they don’t have high hopes for the trial results, alleging that the drug is similar to existing ones.

Another voiced optimism, saying “it’s time.”

A third user expressed hopes for the company releasing the data early in September.

VKTX stock has fallen 7% year-to-date. 

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