VKTX Q2 Earnings Beat Estimates Despite Surge in R&D Costs

VKTX's Operating Costs Rise on Pipeline Work

Research and development expenses surged 92.4% year over year to $115.8 million. The rise primarily reflected higher spending on clinical studies, salaries and benefits, stock-based compensation and third-party consultants.

General and administrative expenses climbed 16.8% to $16.9 million. Higher consultant, legal and patent-service costs, salaries and benefits were partly offset by lower stock-based compensation.

Total operating expenses increased to $132.6 million from $74.6 million a year ago.

VKTX Stock Performance

Year to date, shares of the company have lost 5% against the industry’s nearly 4% growth.

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Viking Continues to Advance Injectable Obesity Program

VK2735 is a dual GLP-1 and GIP receptor agonist being developed for obesity in injectable and oral formulations. Viking believes offering both forms could provide patients with greater flexibility across weight-loss treatment and long-term maintenance.

The subcutaneous (SC) formulation is being evaluated in the phase III VANQUISH program. VANQUISH-1 is studying adults with obesity, while VANQUISH-2 is evaluating adults with obesity and type II diabetes (T2D).

Both studies are fully enrolled and continued to advance according to plan during the quarter. Participants in each study have been randomized to weekly doses of 7.5 mg, 12.5 mg or 17.5 mg of VK2735, or placebo. The studies are evaluating treatment over 78 weeks.

The primary endpoint measures the percentage change in body weight from baseline compared with placebo. Secondary and exploratory measures include the proportion of patients achieving weight reductions of at least 5%, 10%, 15% and 20%.

Each study also includes an extension period. This will allow participants to continue treatment after completing the primary dosing phase, including those initially assigned to placebo.

Viking Prepares Oral VK2735 for Phase III

Viking remains on track to initiate two phase III studies on oral VK2735 in the fourth quarter of 2026. Management said the studies will broadly follow the VANQUISH framework but will be smaller in scale and shorter in duration than the VANQUISH studies.

The company’s prior phase II study showed statistically significant mean body-weight reductions of up to 12.2% after 13 weeks of once-daily oral treatment. Significant differences from baseline and placebo were observed across all doses above 15 mg.

Up to 80% of participants in the VK2735 treatment groups achieved at least 10% weight loss compared with 5% of placebo-treated participants. Viking also reported an encouraging safety and tolerability profile through the 13-week treatment period.

Viking Nears Maintenance Study Readout

Viking is evaluating VK2735 in a separate maintenance study designed to test whether less-frequent dosing can sustain weight loss after an initial period of weekly treatment.

The study includes weekly, every-other-week and monthly SC maintenance regimens, along with placebo. Viking expects to report results later in the third quarter of 2026.

Management said the findings could help identify two to four regimens for additional evaluation in the VANQUISH extension studies, which are expected to begin in late 2026 or early 2027. Viking also plans to assess oral maintenance regimens, with that portion of the study expected to be completed in the first half of 2027.

Viking Expands Its Obesity Pipeline

During the quarter, Viking initiated a phase I single-ascending-dose study on VK3019. The investigational candidate is a dual amylin and calcitonin receptor agonist being developed for obesity.

The early-stage study is evaluating healthy adults with a body mass index of at least 27. Its primary objectives are to assess safety, tolerability and pharmacokinetics following single SC doses.

Exploratory assessments will examine changes in body weight after one dose. Management sees potential for VK3019 as a stand-alone therapy and, over time, as a combination candidate with VK2735.

VKTX Retains Cash Runway Into 2028

Viking ended June with $502 million in cash, cash equivalents and short-term investments compared with $603 million at the end of first-quarter 2026.

Management described the current period as the heaviest phase of cash usage for the VANQUISH studies. It expects spending to taper and reiterated that existing resources should fund operations into 2028.

VKTX’s Zacks Rank

Viking currently carries a Zacks Rank #3 (Hold).

Our Key Picks Among Biotech Stocks

Some better-ranked stocks from the sector are Liquidia Corporation LQDA and Harmony Biosciences HRMY, sporting a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Liquidia’s 2026 earnings per share (EPS) have increased from $2.97 to $3.02. Over the same period, EPS estimates for 2027 have risen from $4.81 to $5.31. LQDA shares have skyrocketed more than 150% year to date.

Liquidia’s earnings beat estimates in three of the trailing four quarters and missed once, with the average surprise being 54.40%.

Over the past 60 days, estimates for Harmony Biosciences’ 2026 EPS have increased from $3.20 to $3.30. Over the same period, EPS estimates for 2027 have risen from $3.64 to $3.87. HRMY’s shares have lost 4% year to date.

Harmony Biosciences’ earnings missed estimates in each of the trailing four quarters, with the average negative surprise being 25.16%.

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This article originally published on Zacks Investment Research (zacks.com).

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