Viking Therapeutics: A High-Stakes Investment at a Critical Juncture

As 2025 draws to a close, Viking Therapeutics shares are navigating a period of significant volatility. Despite reporting substantial progress in its obesity treatment pipeline, the company's stock price has recently been in retreat. This divergence presents investors with a pivotal dilemma: does the current pullback represent a unique buying opportunity, or are the bears correct in their pessimistic outlook?

From a financial perspective, Viking is in a characteristic investment phase for a clinical-stage biotech. Its quarterly loss expanded to $90.8 million, primarily attributed to increased costs for advanced clinical trials and manufacturing preparations. However, this is counterbalanced by a robust balance sheet. The company holds approximately $715 million in liquid assets, providing ample runway to fund its ongoing Phase 3 studies without an immediate need for dilutive capital raises.

A striking discrepancy exists between the current market valuation and analyst projections. While the stock trades near $35.32, research analysts have issued price targets ranging from $87 to $102 per share. Should upcoming clinical data prove positive, this gap suggests a theoretical upside potential exceeding 140 percent.

Short Sellers Circle as Momentum Wanes

The equity has faced consistent selling pressure, closing lower for three consecutive sessions in a generally weak trading week. After a decline of over 3% on Tuesday, shares now hover around the $35.32 mark. Although this remains well above the 52-week low of $18.92, the distance from the annual high has grown noticeably.

Should investors sell immediately? Or is it worth buying Viking Therapeutics?

Beneath the surface, market dynamics are tense. The short interest ratio stands at an elevated 22% of the float, indicating a substantial cohort of traders betting on further price declines. Compounding this, the "days to cover" metric sits at nearly nine days. This sets the stage for a potential short squeeze; any significant positive news could force these short sellers to cover their positions rapidly, potentially triggering a sharp upward move in the stock.

Pipeline Progress: The Core of the Bull Thesis

Operationally, Viking continues to advance its key programs. The company's lead candidate, VK2735, is making crucial strides within its "Vanquish" registration program. Reports indicate that patient recruitment targets for the pivotal Phase 3 trials have largely been met.

The development strategy extends beyond the injectable formulation. Viking is concurrently progressing an oral tablet version of its treatment—a feature that could provide a distinct competitive edge in a market currently dominated by injectables. Furthermore, studies investigating monthly maintenance doses are underway, with results anticipated in 2026. Success here could significantly simplify long-term treatment regimens for patients.

The coming year, 2026, is poised to be decisive for Viking Therapeutics. Armed with a strong cash position and ongoing registration studies, the stock's fate now hinges entirely on the quality of forthcoming clinical data. These results will either validate the optimistic price targets set by analysts or deliver a victory to the short sellers currently positioned against the company.