Viking Therapeutics Advances Obesity Pipeline Amid Cash Decline and Unresolved Oral Tolerability

What happened

Viking Therapeutics reported its Q4 and full-year 2025 financial results, ending with $706 million in cash, down from $807.7 million in June 2025, reflecting significant R&D burn as the company scales late-stage trials. The subcutaneous VK2735 Phase 3 VANQUISH trials are on track, with VANQUISH-1 fully enrolled and VANQUISH-2 nearing completion, aligning with prior expectations for the injectable obesity program. Oral VK2735, which had high discontinuation rates in Phase 2 due to tolerability issues, is now set to advance into Phase 3 for obesity in Q3 2026, though the press release offers no specifics on how discontinuations will be mitigated. Additional updates include a fully enrolled maintenance dosing study with data expected in Q3 2026 and plans to file an IND for a novel amylin agonist this quarter, expanding the early-stage pipeline. These developments reinforce Viking's focus on execution but underscore persistent risks in oral formulation tolerability and cash management amid intense competition.

Implication

The progress in subcutaneous VK2735 Phase 3 trials de-risks the injectable path, supporting the speculative buy thesis if efficacy and tolerability remain class-competitive. Advancing oral VK2735 to Phase 3 adds optionality but introduces uncertainty, as the company has not detailed strategies to address prior discontinuation issues. Cash has decreased to $706 million, indicating a burn rate that could pressure runway beyond 2026 if trials face delays or costs exceed projections. The planned IND for an amylin agonist is a positive pipeline expansion but is early-stage and unlikely to impact near-term valuation. Overall, the update maintains Viking's asymmetric setup but highlights the need for flawless execution and tolerability management to justify current speculation.

Thesis delta

The speculative buy thesis is unchanged, with subcutaneous VK2735 Phase 3 progress reinforcing upside potential based on secured manufacturing and strong Phase 2 data. However, oral VK2735's advancement to Phase 3 introduces cautious optimism but requires concrete evidence of reduced discontinuations to shift from a liability to an asset. Cash burn remains a critical monitor, as the decline could tighten runway and increase financing risk if pivotal milestones are delayed.