Viking Therapeutics, Inc. (VKTX) Earnings

Management highlights

- Lead Program VK2735 (Dual GLP-1/GIP Receptor Agonist) Subcutaneous Formulation: Both ongoing Phase III VANQUISH trials (VANQUISH-1 for patients with obesity, VANQUISH-2 for patients with obesity and type 2 diabetes) are fully enrolled and progressing on schedule. The program enrolled ~4,500 patients in VANQUISH-1 by November 2025, and ~1,000 patients in VANQUISH-2 by Q1 2026. Both trials are randomized, double-blind, placebo-controlled studies evaluating once-weekly dosing for 78 weeks, with an optional extension period for participants after the primary dosing period. Prior Phase II results published in January 2026 showed up to 14.7% mean weight loss after 13 weeks, with a favorable safety and tolerability profile. - VK2735 Oral Formulation: The company is actively preparing for Phase III trials, which are expected to initiate in Q4 2026. If approved, oral VK2735 would be the first oral dual GLP-1/GIP agonist on the market, representing a key competitive advantage. Prior Phase II results showed up to 12.2% mean weight loss after 13 weeks, with 80% of treated patients achieving at least 10% weight loss (compared to 5% of placebo patients), and no meaningful difference in GI adverse events vs placebo at planned clinical doses. - VK2735 Maintenance Dosing Study: The novel range-finding study evaluating weekly, every-other-week, and monthly maintenance dosing regimens after initial weight loss is on track, with topline results expected to be reported in Q3 2026. Results from this study will inform dose selection for upcoming VANQUISH extension trials, expected to start in late 2026 or early 2027. The oral arm of the maintenance study is expected to be completed in H1 2027. - Early-Stage Pipeline: VK3019, an investigational dual amylin and calcitonin receptor agonist (DACRA) for obesity, initiated Phase I single ascending dose trials in Q2 2026. Preclinical data showed significant weight reduction in multiple animal models, and the program expands Viking's obesity franchise, with potential for use as monotherapy or combination therapy with VK2735. - Organizational Growth: The company has expanded executive leadership to prepare for potential commercialization, appointing a Chief Commercial Officer in Q1 2026, a new Chief Medical Officer with deep obesity and metabolic disease expertise in Q2 2026, and adding a new experienced healthcare commercialization executive to the Board of Directors post-quarter. The company is actively building out core functions including payer/reimbursement, clinical operations, regulatory affairs, data management, and quality while remaining operationally lean. - Strategic Mission: Viking is focused on developing a diversified portfolio of personalized obesity treatment options to meet diverse patient needs, including subcutaneous and oral formulations, flexible maintenance dosing, and novel mechanism candidates to address unmet need for long-term weight management.

Guidance

- The VK2735 oral Phase III program and subcutaneous VK2735 maintenance study remain on track for initiation in Q4 2026 and topline data release in Q3 2026, respectively. - The company confirms existing cash guidance: its $502 million cash balance as of Q2 end 2026 is sufficient to fund operations into 2028, covering completion of ongoing Phase III trials and development of additional pipeline programs. - Cash burn is expected to taper from the Q2 2026 level going forward, as the peak spending period for the subcutaneous VANQUISH Phase III program has passed. - Oral VK2735 Phase III trials are expected to be approximately 75% smaller in size and lower in cost than the subcutaneous VANQUISH program, with a size in the same neighborhood as the OASIS-1 trial for oral semaglutide. - The VK3019 Phase I program is expected to complete development enough for a go/no-go decision in 2027, with combination studies with VK2735 not expected to enter the clinic before 2027 at the earliest.

Segment performance

Viking Therapeutics is a clinical-stage biopharmaceutical company focused exclusively on obesity therapeutics, so it does not report segmented financial performance for multiple product segments. All current operating results are tied to pipeline development of obesity drug candidates. For Q2 2026, the company reported: research and development expenses of $115.8 million (up from $60.2 million in Q2 2025); general and administrative expenses of $16.9 million (up from $14.4 million in Q2 2025); a net loss of $128.1 million, or $1.10 per share (compared to a net loss of $65.6 million, or $0.58 per share in Q2 2025). For the first half of 2026, cumulative research and development expenses were $266 million (up from $101.5 million in H1 2025); cumulative general and administrative expenses were $30.8 million (up from $28.5 million in H1 2025); cumulative net loss was $286.3 million, or $2.47 per share (compared to a net loss of $111.2 million, or $0.99 per share in H1 2025). As of June 30, 2026, the company held $502 million in cash, cash equivalents and short-term investments, down from $706 million as of December 31, 2025.

Risks & headwinds

- Forward-looking statements related to clinical trial timelines, trial outcomes, regulatory approvals, and commercial opportunity are subject to inherent risks and uncertainties that could cause actual results to differ materially from expectations, per the company's safe harbor disclosure. - There is potential for unexpected elevated placebo effects in Phase III trials due to off-trial use of compounded GLP-1 agonists by patients in the placebo arm, though the company has not observed this issue in its ongoing trials to date. - Cross-trial comparisons of maintenance study data are limited by differing study design and trial duration, so expected weight loss outcomes cannot be reliably projected from existing published data from other drug maintenance studies. - The safety and tolerability of higher doses of VK2735 used in the maintenance study, and switching between different weight loss therapies, have not been fully evaluated in clinical trials, so adverse event outcomes cannot be guaranteed. - Clinical development of new candidates like VK3019 carries inherent risk, as positive preclinical results may not translate to safe or effective outcomes in human trials.

Analyst Q&A

• Q: What is the titration schema for the VK2735 maintenance study, will GI adverse event data be broken out by induction and maintenance periods, and how should the maintenance study results be benchmarked against prior published maintenance studies? /

  A: The maintenance study uses a compressed titration schedule during the 21-week induction period to reach the maintenance phase faster, while the Phase III VANQUISH trials use a slower 2-4 week per step titration. The company expects to be able to break out safety and tolerability data between the induction and maintenance periods. Cross-trial comparisons to the published tirzepatide SURMOUNT-MAINTAIN study are not meaningful due to the much shorter 12-week maintenance window in Viking's study. The key goal is to identify 2-4 cohorts suitable for further evaluation in VANQUISH extension studies, with a target of retaining 75-80% of initial achieved weight loss to preserve cardiometabolic benefits.

• Q: What is the base case manufacturing strategy for VK3019, and how many dosing cohorts will be included in the oral VK2735 maintenance study? /

  A: Viking's existing manufacturing agreement with CordenPharma is flexible enough to add new peptide compounds like VK3019 to the existing API production arrangement, so no new major manufacturing partnership is needed at this stage. The oral VK2735 maintenance study will have a similar number of dosing arms to the subcutaneous maintenance study, with full details to be disclosed when the study initiates in Q4 2026.

• Q: What is the long-term strategic positioning of VK3019 (DACRA) as monotherapy vs combination therapy with VK2735, and how does it differ from other amylin programs in development? /

  A: VK3019 has potential as both monotherapy and combination therapy. As monotherapy, it is suited for patients with lower BMI (32-35) needing 8-10% weight loss, and patients who are intolerant to GLP-1 agonists. In combination with VK2735, it could deliver a 40-50% efficacy improvement over VK2735 alone, resulting in industry-leading weight loss. Preclinical data shows VK3019 is more potent than the most advanced amylin agonist currently in development, with balanced activity on amylin and calcitonin receptors and greater weight loss potency than VK2735 in head-to-head obese primate studies. Combination studies will not start until after the single-agent Phase I/II development is completed.

• Q: How is the company addressing the risk of unexpected placebo effects from off-trial GLP-1 use in the VANQUISH studies, and how will VK2735 efficacy be reported commercially? /

  A: Off-trial GLP-1 use is an exclusion criterion in the VANQUISH studies, and the company has not observed meaningful off-trial GLP-1 use among trial participants to date. The company will always report both absolute weight loss for treated groups and placebo groups, as well as placebo-adjusted results, to provide full transparency for stakeholders.