Viking Therapeutics Faces Market Pressure Following Quarterly Results

Viking Therapeutics finds itself navigating turbulent market conditions as the biopharmaceutical company reported financial figures that fell short of expectations. While clinical development of its promising obesity treatment VK2735 continues to advance, the company's stock faced downward pressure from analyst revisions and investor concerns over accelerating losses.

The company's third-quarter earnings revealed a net loss of $90.8 million, translating to $0.81 per share. This performance significantly underperformed against consensus estimates that had projected a loss of $0.67 per share. The contrast becomes even more pronounced when compared to the same quarter last year, which recorded a substantially lower loss of $0.22 per share.

A primary driver behind the expanded losses emerged from research and development expenditures, which surged from $22.8 million to $90 million year-over-year. This substantial increase reflects the company's intensified clinical trial activities for its flagship therapeutic candidate.

Analyst Community Adjusts Expectations

Multiple financial institutions promptly revised their financial models following the earnings release, creating a wave of adjusted projections for 2025:

• Cantor Fitzgerald lowered its per-share forecast to $2.87
• B. Riley reduced expectations to $2.77 while maintaining its "Strong Buy" recommendation
• Leerink Partners adjusted its estimate from $2.46 to $2.66 per share
• HC Wainwright revised its projection to $2.73 but reaffirmed its "Buy" rating with a $102 price target

The collective message from market analysts indicates anticipated losses will exceed previous expectations, though several maintain positive long-term outlooks on the company's prospects.

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

Pipeline Progress Offers Counterbalance

Amid the financial headwinds, Viking's developmental pipeline shows continued momentum. The Phase 3 VANQUISH trials investigating subcutaneous administration of VK2735 remain on schedule, with VANQUISH-1 expected to complete recruitment by year-end. The subsequent VANQUISH-2 trial is slated to begin in the first quarter of 2026.

Perhaps more compelling, the oral formulation of VK2735 demonstrated weight reduction of up to 12.2% after 13 weeks in Phase 2 studies. Concurrently, the company has initiated a maintenance dosing investigation exploring both monthly and weekly administration regimens.

Financial Foundation and Market Response

Despite the quarterly challenges, Viking Therapeutics maintains a solid financial position with $715 million in liquid assets. This reserve provides sufficient runway to complete the planned Phase 3 clinical programs without immediate need for additional financing.

Market participants responded cautiously to the mixed developments, with shares declining 4.73% in after-hours trading to settle at $32.51. The stock now trades toward the lower boundary of its 52-week range, signaling investor wariness about mounting losses despite clinical advancements.

Looking ahead, the company plans regulatory submission for a novel drug class (DACRA) in 2026 alongside critical data readouts for maintenance dosing protocols. Until these milestones materialize, Viking shares remain a forward-looking investment proposition with uncertain near-term outcomes.