7. Viking Therapeutics Inc. (NASDAQ:VKTX)
Year-to-Date Performance as of September 23: 254.92%
Market Cap as of September 23: $7.31 billion
Number of Hedge Fund Holders: 50
Viking Therapeutics Inc. (NASDAQ:VKTX) is a clinical-stage biopharmaceutical company focused on developing novel therapies for patients suffering from metabolic and endocrine disorders and is working on treatments for conditions like obesity, non-alcoholic steatohepatitis (NASH), and thyroid disorders.
The company’s lead drug candidate is VK-2809, intended to treat patients with steatohepatitis. However, another key aspect of the drug is that it is a GLP-1 agonist, which also opens up the secondary weight loss drug market to the company. A key advantage of VK-2809 is that it is in tablet form, which makes the drug easier to administer as opposed to the injections that are currently dominating the market.
It is also developing the VK-2735 drug that also targets the weight loss market and increases the firm’s exposure to this multi-billion dollar industry. VK-2735 entered into Phase 2 trials in Q2. Patients receiving VK2735 demonstrated significant reductions in mean body weight from baseline, ranging up to 14.7%, as well as significant reductions in body weight relative to placebo, ranging up to 13.1%.
Viking Therapeutics Inc. (NASDAQ:VKTX) reported a net loss of $22.3 million in Q2 2024, compared to $19.2 million in Q2 2023. The increase in net loss was primarily due to higher research and development and general and administrative expenses, partially offset by increased interest income.
The company has a strong balance sheet with over $900 million in cash. This highlights the company’s ability to keep up with all of its pipeline programs. Many investors and hedge funds continue to support Viking Therapeutics Inc. (NASDAQ:VKTX) due to its growth potential and ability to challenge big pharma players.
Alger Mid Cap Focus Fund stated the following regarding Viking Therapeutics, Inc. (NASDAQ:VKTX) in its Q2 2024 investor letter:
“Viking Therapeutics, Inc. (NASDAQ:VKTX) is a clinical-stage biopharmaceutical company focused on developing novel therapies for patients suffering from metabolic and endocrine disorders. Their lead drug VK2809, a beta-selective thyroid hormone receptor agonist, is in development for nonalcoholic steatohepatitis and nonalcoholic fatty liver disease. Their VK2735 drug is a GLP-1 dual agonist being developed for patients with obesity. During the quarter, the company’s shares were negatively impacted by several factors: 1) a challenging environment for biotechnology stocks, exacerbated by Fed policy decisions to maintain elevated interest rates, 2) increased competition in the obesity treatment landscape, 3) manufacturability and scalability concerns regarding Viking’s obesity drug and 4) the absence of strategic partnerships from large pharmaceutical companies. Despite the challenging quarter, we continue to believe that the company’s GLP-1 drug has the potential to be a best-in-class obesity drug given its favorable efficacy and safety profile. Further, with approximately one-third of U.S. adults suffering from obesity, we believe the company’s GLP[1]1 drug has the potential to address a large market once approved.”
