At Ando Money, we explore the latest financial performance of companies like Viking Therapeutics.
Viking Therapeutics net worth, driven by R&D investments and its clinical pipeline, reveals important insights. In 2024, their financials reflect significant shifts in research spending, operational costs, and liquidity.
Let’s dive into Viking Therapeutics’ detailed quarterly results and the factors driving their financial health.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Viking Therapeutics, Inc. |
| Full Name | Viking Therapeutics, Inc. |
| Website | vikingtherapeutics.com |
| Industry | Biopharmaceutical |
| Traded as | NASDAQ: VKTX |
| ISIN | N/A |
| Founded | N/A |
| Founders | N/A |
| Country/Territory | United States |
| Headquarters | San Diego, California, USA |
| Chief Executive Officer | Brian Lian, Ph.D. |
| Number of Employees | N/A |
| Market Cap | $7.29 billion |
| Total Assets | $946.8 million |
| Total Equity | $920.98 million |
| Revenue | $0 (2024) |
| Net Income | Net loss of $49.6 million (six months 2024) |
What is the Net Worth/Market Cap of Viking Therapeutics in 2024?
Viking Therapeutics has a market cap of $7.29 billion in 2024. This places the company among notable players in the biopharmaceutical sector.
Although Viking is still in the clinical phase of developing treatments, it stands out due to its robust pipeline and financial backing. To give you a sense of scale, here are some related companies or brands in this space:
- Novo Nordisk
- Amgen
- Regeneron
- Vertex Pharmaceuticals
- Biogen
- Gilead Sciences
- Sanofi
- Eli Lilly
- Pfizer
- Merck
If you’re curious about how Viking compares to the world’s wealthiest companies, take a look at our analysis of the top-performing companies.
Viking Therapeutics Financial Performance Overview
Financial Results for the Latest Quarter
Viking Therapeutics has reported no revenue in 2024, which is not unusual for a clinical-stage biopharmaceutical company. However, expenses are climbing, especially in research and development (R&D).
In the second quarter of 2024, Viking reported a net loss of $22.3 million, compared to a net loss of $19.2 million in the same quarter of 2023.
This was primarily driven by the increased investment in clinical trials, manufacturing of drug candidates, and expanding pre-clinical research.
The company’s overall operating expenses for Q2 2024 reached $34.1 million, up from $23.7 million in 2023, highlighting how aggressive Viking is in pushing its clinical pipeline forward.
However, the company maintains a strong liquidity position with $942 million in cash and equivalents, allowing it to comfortably continue its R&D efforts.
Research and Development Expenses
The majority of Viking Therapeutics’ financial resources are directed toward R&D. In the second quarter of 2024, R&D expenses totaled $23.8 million, compared to $13.9 million in Q2 2023.
This significant increase reflects ongoing trials for its lead products, VK2735 and VK2809. These drugs are advancing in the clinical pipeline, with VK2735 moving toward Phase 3 for obesity treatment.
Viking is also working on VK2809, aimed at treating NASH (non-alcoholic steatohepatitis), a growing market.
The R&D investments into these drugs not only reflect a commitment to solving complex health issues but also position the company for potential long-term revenue streams if approved.
Administrative and Operational Costs
Beyond R&D, Viking is also increasing its general and administrative (G&A) expenses.
In Q2 2024, G&A expenses amounted to $10.3 million, slightly higher than $9.8 million in the previous year.
These costs include stock-based compensation and payments to third-party consultants for legal and patent services.
Although these costs are rising, they are proportionate to the company’s ongoing clinical trials and operational growth.
Drug Pipeline and Its Impact on Finances
Viking’s pipeline is its primary driver for potential future revenues. The development of VK2735, a drug aimed at treating obesity, and VK2809, targeted at NASH, are progressing well.
The successful completion of Phase 2 trials for both drugs has brought positive momentum.
Viking believes these drugs have “best-in-class” potential, which could bring in substantial revenues once they hit the market.
Given that NASH is expected to be a multi-billion-dollar market, the financial impact of a successful drug would be transformative for Viking.
Additionally, Viking has other promising candidates in its pipeline, such as VK0214, targeting rare disorders like X-linked adrenoleukodystrophy (X-ALD).
These programs, while in earlier stages, contribute to the company’s future growth potential and, importantly, justify the heavy R&D spending.
Cash Reserves and Liquidity Status
As of June 30, 2024, Viking Therapeutics held $942 million in cash, cash equivalents, and short-term investments.
This strong cash position is up from $362 million at the end of 2023. The increase in cash is a result of successful capital raising efforts.
These funds provide Viking with the runway needed to advance its clinical programs without immediate concerns over liquidity.
The substantial cash reserves also ensure that Viking can meet its financial obligations while maintaining flexibility to fund future trials, which will play a pivotal role in determining the company’s long-term financial health.
Net Loss and Profitability Trends
Though Viking Therapeutics has not yet reached profitability, the increase in net loss from $19.2 million in Q2 2023 to $22.3 million in Q2 2024 is aligned with the company’s current focus on advancing its drug pipeline.
In the first half of 2024, the company reported a net loss of $49.6 million.
While this may seem high, it is typical for clinical-stage companies to operate at a loss until their products reach the market.
With the advanced stages of its clinical trials, Viking is positioning itself for a potential future where approved drugs could significantly offset these losses and generate revenue.
Equity and Shareholder Insights
Viking’s total equity has grown alongside its balance sheet, with equity rising to $920.98 million by June 2024.
This increase in equity is primarily driven by additional stock issuance to raise capital for ongoing trials.
Currently, Viking has 110.79 million shares outstanding, and while issuing new stock dilutes existing shareholders, it has provided the necessary funds for the company to continue its development efforts.
FAQs about Viking Therapeutics
What is Viking’s most promising drug candidate?
Its most promising candidate is VK2735, which is advancing into Phase 3 trials for treating obesity.
How is Viking Therapeutics funded?
It raised significant funds through stock offerings, which contributed to its $942 million cash reserve by June 2024.
Where is Viking headquartered?
Viking is based in San Diego, California, where it conducts most of its clinical research and business operations.
What diseases is Viking focused on?
Viking is primarily focused on metabolic disorders like obesity and NASH, along with rare diseases such as X-linked adrenoleukodystrophy (X-ALD).
How has Viking’s net income changed over time?
In 2024, Viking reported a net loss of $49.6 million for the first six months, an increase from $38.8 million in the same period of 2023.
Conclusion
Stay updated on Viking Therapeutics’ financial journey and learn more about its future potential.
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