Viking Therapeutics Reports Third Quarter 2022 Financial Results and Provides Corporate Update

Rhea-AI Summary

Viking Therapeutics (VKTX) announced its Q3 2022 financial results, reporting a net loss of $15.8 million, or $0.21 per share, compared to $13.2 million, or $0.17 per share, in Q3 2021. The company ended the quarter with $155 million in cash, supporting ongoing clinical trials for VK2809, VK2735, and VK0214, with data expected in 2023. The Phase 2b VOYAGE study for VK2809 is on track for Q4 2022 enrollment completion. Increased R&D and G&A expenses were noted, affecting the overall financial performance.

Positive

• Cash position of $155 million supports continued clinical development.
• VK2809 shows strong initial efficacy in liver fat reduction and safety profile.

Negative

• Net loss increased to $15.8 million for Q3 2022, up from $13.2 million in Q3 2021.
• Research and development expenses rose to $12 million, up from $10.8 million in Q3 2021.

Conference call scheduled for 4:30 p.m. ET today

• Company Positioned to Announce Data from Three Clinical Programs in 2023
• VK2809 Phase 2b VOYAGE Study On Track to Complete Enrollment in Q4 2022; Data Expected in 1H 2023
• Phase 1 Study of Dual GLP-1/GIP Agonist VK2735 Continues to Enroll; Data Expected in Early 2023
• Phase 1b Study of VK0214 in X-ALD Ongoing; Data Expected in 1H 2023

SAN DIEGO, Oct. 26, 2022 /PRNewswire/ -- Viking Therapeutics, Inc. ("Viking") (NASDAQ: VKTX), a clinical-stage biopharmaceutical company focused on the development of novel therapies for metabolic and endocrine disorders, today announced its financial results for the third quarter and nine months ended September 30, 2022, and provided an update on its clinical pipeline and other corporate developments.

Highlights from the Quarter Ended September 30, 2022, and Other Recent Events:

"The first three quarters of 2022 have been very productive, and we look forward to announcing the results of three clinical trials in the coming quarters," stated Brian Lian, Ph.D., chief executive officer of Viking. "With respect to our lead compound, VK2809 for the treatment of NASH and fibrosis, we expect to complete enrollment in our Phase 2b VOYAGE trial by the end of the year, and report data for the primary endpoint of this study in the first half of 2023. During the quarter, the Phase 1 study evaluating our dual incretin receptor agonist candidate, VK2735, continued to enroll and we expect to report the initial data from this study in early 2023. In addition, our Phase 1b trial evaluating VK0214 in X-ALD patients resumed during the quarter and we expect to report data from this trial in the first half of 2023. Finally, we ended the third quarter with $155 million in cash, which provides the runway to advance each of these clinical programs into later stage development."

Pipeline and Corporate Highlights

• VK2809 Phase 2b VOYAGE Study On Track to Complete Enrollment in Q4 2022; Data Expected in 1H 2023. VK2809 is an orally available, small molecule agonist of the thyroid hormone receptor that is selective for liver tissue as well as the beta isoform of the receptor. The compound has demonstrated encouraging therapeutic potential in liver disorders, producing significant reductions in liver fat and plasma lipids in non-alcoholic fatty liver disease (NAFLD) patients with elevated lipids.
  
  As previously reported, the company's 12-week Phase 2a trial of VK2809 in patients with hypercholesterolemia and NAFLD successfully achieved both its primary and secondary endpoints, demonstrating significant reductions in liver fat and plasma lipids. Patients treated with VK2809 experienced up to 60% mean relative reductions in liver fat content, and 88% of patients receiving VK2809 experienced at least a 30% reduction in liver fat content. The observed reductions in liver fat were durable, with the majority of patients remaining responders four weeks after completion of dosing. The study also demonstrated a promising safety and tolerability profile for VK2809. No serious adverse events were reported, and the rate of gastrointestinal disturbances such as nausea and diarrhea was lower among VK2809 treated vs. placebo patients. Further, patients treated with VK2809 experienced a reduction in plasma lipids. The elevation of such lipids, including LDL-cholesterol, triglycerides and atherogenic proteins, have been correlated with increased cardiovascular risk. The company believes that the lipid lowering characteristics of VK2809, combined with its safety, significant liver-fat reduction and oral dosing, distinguish it from other drugs in development for this indication and strengthen its position as a best-in-class therapeutic.
  
  Given these findings, Viking initiated the VOYAGE study, a Phase 2b study designed to evaluate VK2809 in patients with non-alcoholic steatohepatitis (NASH) and fibrosis. VOYAGE is a randomized, double-blind, placebo-controlled, multicenter trial designed to assess the efficacy, safety and tolerability of VK2809 in patients with biopsy-confirmed NASH and fibrosis. The target population includes patients with at least 8% liver fat content as measured by magnetic resonance imaging proton density fat fraction, as well as F2 and F3 fibrosis. Up to 25% of patients may have F1 fibrosis provided that they also possess at least one additional risk factor. The primary endpoint of the study will evaluate the change in liver fat content from baseline to Week 12 in patients treated with VK2809 as compared to patients receiving placebo. Secondary objectives include the evaluation of histologic changes assessed by hepatic biopsy after 52 weeks of treatment.
  
  During the third quarter, enrollment in VOYAGE continued. The company remains on track to complete enrollment by year-end and report data for the primary endpoint in the first half of 2023.
  
  
• Phase 1 Study of Dual GLP-1/GIP Agonist VK2735 Continues to Enroll: Data Expected in Early 2023. In early 2022, Viking announced the initiation of a Phase 1 clinical trial of VK2735 for the potential treatment of various metabolic disorders. VK2735 is a dual agonist of the glucagon like peptide-1, or GLP-1 receptor, and the glucose dependent insulinotropic polypeptide, or GIP, receptor.
  
  Initial data from this program, which were presented last November at the annual meeting of The Obesity Society, demonstrated that GIP receptor activity improved upon the metabolic effects achieved through activation of the GLP-1 receptor alone. Importantly, these presentations highlighted significant improvements in weight loss, glucose control and insulin sensitivity among diet-induced obese mice following treatment with the company's compounds as compared to a GLP-1 mono-agonist, when administered at the same dose for the same period of time. VK2735 treated animals also demonstrated reductions in liver fat content that were generally larger than those observed among animals treated with a GLP-1 mono-agonist.
  
  The ongoing Phase 1 trial is a randomized, double-blind, placebo-controlled, single ascending dose (SAD) and multiple ascending dose (MAD) study. The SAD portion of the study is enrolling healthy adults, while the MAD portion of the study is enrolling healthy adults with a minimum body mass index of 30 kilograms per meter squared. The primary objectives of the study include an evaluation of the safety and tolerability of single and multiple doses of VK2735 delivered subcutaneously, as well as the identification of doses suitable for further clinical development. The trial will also evaluate the pharmacokinetics of VK2735 following single and multiple doses. Exploratory pharmacodynamic assessments include evaluations of changes in body weight and liver fat content after four weeks of once-weekly administration.
  
  During the third quarter, the study continued enrolling new subjects and the company expects to report the initial data from this study in early 2023.
  
  
• Phase 1b Study of VK0214 in X-ALD Ongoing; Data Expected in 1H 2023. VK0214 is a novel, orally available thyroid hormone receptor beta agonist being evaluated as a potential treatment for X-linked adrenoleukodystrophy (X-ALD), a rare neurogenerative disease for which there are currently no pharmacologic treatment options.
  
  In 2020, Viking initiated a randomized, double-blind, placebo-controlled, SAD and MAD Phase 1 study of VK0214 in healthy volunteers. This study successfully achieved its primary and secondary endpoints as VK0214 demonstrated dose-dependent exposures, no evidence of accumulation, and a half-life consistent with anticipated once daily dosing. VK0214 demonstrated encouraging safety and tolerability in this study, with no SAEs observed and no differences reported for gastrointestinal side effects such as nausea or diarrhea among subjects treated with VK0214 compared with placebo. After 14 days of treatment, subjects who received VK0214 also experienced reductions in LDL-cholesterol, triglycerides, apolipoprotein B and lipoprotein (a). Many of these lipid reductions achieved statistical significance, though the study was not powered to demonstrate statistical significance on lipid assessments.
  
  In 2021, the company initiated a Phase 1b study of VK0214 in patients with the adrenomyeloneuropathy, or AMN, form of X-ALD. AMN is the most common form of X-ALD, affecting approximately 50% of those with the disease. The Phase 1b trial is a randomized, double-blind, placebo-controlled multi-center study in adult male patients with AMN. The primary objectives of the study are to evaluate the safety and tolerability of VK0214 administered orally, once-daily for 28-days. The study also includes an evaluation of the pharmacokinetics of VK0214 in AMN patients, as well as an exploratory assessment of changes in plasma levels of very long chain fatty acids.
  
  The company expects to report the results from this trial in 1H 2023.
  
  
• Strong balance sheet to support advancement of clinical programs into late stage development. Viking ended the third quarter of 2022 with $155 million in cash, cash equivalents and short-term investments.
  
  
• Upcoming investor events. Viking management will participate in the following upcoming investor events:

Stifel 2022 Healthcare Conference
New York City, NY
November 15 – 16, 2022

BIO One-on-One Partnering, JPM Week
San Francisco, CA
January 9 – 12, 2023

Third Quarter and Nine Month Financial Highlights

Third Quarter Ended September 30, 2022 and 2021

Research and development expenses for the three months ended September  30, 2022 were $12.0 million compared to $10.8 million for the same period in 2021. The increase was primarily due to increased expenses related to manufacturing for the company's drug candidates, salaries and benefits, pre-clinical studies and stock-based compensation, partially offset by decreased expenses related to the company's clinical studies and third-party consultants.

General and administrative expenses for the three months ended September 30, 2022 were $4.2 million compared to $2.6 million for the same period in 2021. The increase was primarily due to increased expenses related to legal services, stock-based compensation and salaries and benefits.

For the three months ended September 30, 2022, Viking reported a net loss of $15.8 million, or $0.21 per share, compared to a net loss of $13.2 million, or $0.17 per share, in the corresponding period in 2021. The increase in net loss and net loss per share for the three months ended September 30, 2022 was primarily due to the increase in research and development expenses and general and administrative expenses, noted previously, compared to the same period of 2021.

Nine Months Ended September 30, 2022 and 2021

Research and development expenses for the nine months ended September 30, 2022 were $38.1 million compared to $35.1 million for the same period in 2021. The increase was primarily due to increased expenses related to manufacturing for the company's drug candidates, salaries and benefits and stock-based compensation, partially offset by decreased expenses related to the company's clinical studies, pre-clinical studies and third-party consultants.

General and administrative expenses for the nine months ended September 30, 2022 were $12.0 million compared to $8.0 million for the same period in 2021. The increase was primarily due to increased expenses related to legal services, stock-based compensation and salaries and benefits.

For the nine months ended September 30, 2022, Viking reported a net loss of $49.3 million, or $0.64 per share, compared to a net loss of $42.6 million, or $0.55 per share, in the corresponding period in 2021. The increase in net loss and net loss per share for the nine months ended September 30, 2022 was primarily due to the increase in research and development expenses and general and administrative expenses, noted previously.

Balance Sheet as of September 30, 2022

At September 30, 2022, Viking held cash, cash equivalents and short-term investments of $155 million, compared to $202 million as of December 31, 2021.

Conference Call

Management will host a conference call to discuss the company's third quarter 2022 financial results today at 4:30 pm Eastern. To participate in the conference call, please dial (844) 850-0543 from the U.S. or (412) 317-5199 from outside the U.S. In addition, following the completion of the call, a telephone replay will be accessible until November 2, 2022 by dialing (877) 344-7529 from the U.S. or (412) 317-0088 from outside the U.S. and entering conference ID # 8398407. Those interested in listening to the conference call live via the internet may do so by visiting the Webcasts page of Viking's website at http://ir.vikingtherapeutics.com/webcasts. An archive of the webcast will also be available on the Webcasts page of the company's website for 30 days.

About Viking Therapeutics, Inc.

Viking Therapeutics is a clinical-stage biopharmaceutical company focused on the development of novel first-in-class or best-in-class therapies for the treatment of metabolic and endocrine disorders. Viking's research and development activities leverage its expertise in metabolism to develop innovative therapeutics designed to improve patients' lives. The company's clinical programs include VK2809, a novel, orally available, small molecule selective thyroid hormone receptor beta agonist for the treatment of lipid and metabolic disorders, which is currently being evaluated in a Phase 2b study for the treatment of biopsy-confirmed non-alcoholic steatohepatitis (NASH) and fibrosis. In a Phase 2a trial for the treatment of non-alcoholic fatty liver disease (NAFLD) and elevated LDL-C, patients who received VK2809 demonstrated statistically significant reductions in LDL-C and liver fat content compared with patients who received placebo. The company is also developing VK2735, a novel dual agonist of the glucagon-like peptide 1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP) receptors for the potential treatment of various metabolic disorders. VK2735 is currently being evaluated in a Phase 1 clinical trial. In the rare disease space, the company is developing VK0214, a novel, orally available, small molecule selective thyroid hormone receptor beta agonist for the potential treatment of X-linked adrenoleukodystrophy (X-ALD). VK0214 is currently being evaluated in a Phase 1b clinical trial in patients with the adrenomyeloneuropathy (AMN) form of X-ALD. The company holds exclusive worldwide rights to a portfolio of five therapeutic programs, including VK2809 and VK0214, which are based on small molecules licensed from Ligand Pharmaceuticals Incorporated.

For more information about Viking Therapeutics, please visit www.vikingtherapeutics.com. Follow Viking on Twitter @Viking_VKTX.

Forward-Looking Statements

This press release contains forward-looking statements regarding Viking Therapeutics, Inc., under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including statements about Viking's expectations regarding its clinical and preclinical development programs. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially and adversely and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: risks associated with the success, cost and timing of Viking's product candidate development activities and clinical trials, including those for VK2735, VK0214, VK2809, and the company's other incretin receptor agonists; risks that prior clinical and preclinical results may not be replicated; risks regarding regulatory requirements; and other risks that are described in Viking's most recent periodic reports filed with the Securities and Exchange Commission, including Viking's Annual Report on Form 10-K for the year ended December 31, 2021, and subsequent Quarterly Reports on Form 10-Q, including the risk factors set forth in those filings. These forward-looking statements speak only as of the date hereof. Viking disclaims any obligation to update these forward-looking statements except as required by law.

Viking Therapeutics, Inc.
Statements of Operations and Comprehensive Loss
(In thousands, except per share amounts)
(Unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2022				2021				2022				2021
Revenues	$	—			$	—			$	—			$	—
Operating expenses:
Research and development		11,959				10,795				38,056				35,134
General and administrative		4,237				2,608				12,016				8,038
Total operating expenses		16,196				13,403				50,072				43,172
Loss from operations		(16,196)				(13,403)				(50,072)				(43,172)
Other income (expense):
Amortization of financing costs		(27)				35				(51)				(6)
Interest income, net		450				125				857				544
Realized loss on investments, net		-				—				(42)				—
Total other income, net		423				160				764				538
Net loss		(15,773)				(13,243)				(49,308)				(42,634)
Other comprehensive loss, net of tax:
Unrealized loss on securities		110				19				(813)				(116)
Foreign currency translation loss		(223)				—				(399)				—
Comprehensive loss	$	(15,886)			$	(13,224)			$	(50,520)			$	(42,750)
Basic and diluted net loss per common share	$	(0.21)			$	(0.17)			$	(0.64)			$	(0.55)
Weighted-average shares used to compute basic and diluted net loss per share		76,505				78,009				76,917				76,908

 

Viking Therapeutics, Inc.
Balance Sheets
(In thousands, except share and per share amounts)
	September 30, 2022				December 31, 2021
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	29,408			$	26,371
Short-term investments – available for sale		125,615				175,732
Prepaid clinical trial and preclinical study costs		9,167				7,806
Prepaid expenses and other current assets		956				619
Total current assets		165,146				210,528
Right-of-use assets		1,489				25
Deferred financing costs		15				76
Deposits		33				33
Total assets	$	166,683			$	210,662
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	3,142			$	1,444
Other accrued liabilities		10,620				7,305
Lease liability, current		299				29
Total current liabilities		14,061				8,778
Lease liability, net of current portion		1,337				—
Total long-term liabilities		1,337				—
Total liabilities		15,398				8,778
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, $0.00001 par value: 10,000,000 shares authorized at September 30, 2022 and December 31, 2021; no shares issued and outstanding at September 30, 2022 and December 31, 2021		—				—
Common stock, $0.00001 par value: 300,000,000 shares authorized at September 30, 2022 and December 31, 2021; 76,688,478 and 78,248,401 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively		1				1
Additional paid-in capital		432,330				425,614
Accumulated deficit		(272,490)				(223,182)
Accumulated other comprehensive loss		(1,761)				(549)
Treasury stock at cost, 2,193,251 shares at September 30, 2022, no shares at December 31, 2021		(6,795)				—
Total stockholders' equity		151,285				201,884
Total liabilities and stockholders' equity	$	166,683			$	210,662

 

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SOURCE Viking Therapeutics, Inc.

FAQ

What were Viking Therapeutics' financial results for Q3 2022?

Viking reported a net loss of $15.8 million, or $0.21 per share, for Q3 2022.

What is the status of Viking Therapeutics' VK2809 study?

The Phase 2b VOYAGE study for VK2809 is set to complete enrollment by the end of Q4 2022.

When can we expect data from Viking's clinical trials?

Data from the VK2809 VOYAGE study is expected in the first half of 2023.

How much cash did Viking Therapeutics have at the end of Q3 2022?

Viking held $155 million in cash, cash equivalents, and short-term investments as of September 30, 2022.

What were the research and development expenses for Viking in Q3 2022?

R&D expenses for Q3 2022 totaled $12 million, an increase compared to the previous year.