Viking Therapeutics Poised for Earnings Reveal Amid Weight-Loss Drug Buzz VKTX is on the brink of announcing its third-quarter earnings this Wednesday, after the market closes. Investors are particularly eager as the company’s stock has surged nearly 240% this year, driven by growing enthusiasm for its weight-loss drug candidate, VK2735.

This emerging player is not just tagging along with established industry leaders; rather, Viking is taking direct aim at them in the flourishing obesity treatment market.

Innovative Weight-Loss Drug Competes with Industry Giants

Viking’s VK2735 aims to replicate the effects of both GLP-1 and GIP hormones, potentially leading to better weight loss results than current medications such as Novo Nordisk A/S‘s NVO Wegovy and Eli Lilly And Co‘s LLY Zepbound, which only target GLP-1. While Novo Nordisk’s stock is up 12.65% and Eli Lilly’s has risen 53.16% this year, Viking’s innovative approach positions it to capture a notable share of the market.

In contrast, Pfizer Inc PFE finds itself in a tough spot, with a 3.16% decline in its stock as it works to regain standing in the competitive weight-loss sector. Viking’s plan, which includes both injectable and oral forms of VK2735, may keep patients within its brand, enhancing user retention.

What to Expect: Earnings and Future Prospects

As Viking lacks currently marketed products, the spotlight during the upcoming earnings report will be on updates regarding its research pipeline. This includes VK2735, VK2809 aimed at treating non-alcoholic steatohepatitis, and VK0214 for a rare neurodegenerative condition.

Investors are particularly eager for news on Viking’s discussions with the FDA about advancing its obesity and NASH programs to late-stage trials.

Earlier this month, Viking shared positive results from a Phase 1b study for VK0214, which showed it was well-tolerated and met its primary goals.

In clinical trials, VK2735 has demonstrated encouraging results, with participants experiencing significant weight loss.

Technical Analysis: Stock Trends Before Q3 Earnings

Despite growing excitement, the technical indicators offer a mixed perspective.

Chart created using Benzinga Pro

The stock trades above its 50-day and 200-day simple moving averages, indicating a bullish long-term trend. However, the eight-day and 20-day SMAs suggest sellers may have the advantage in the short term, as these are currently above the stock price of $63.80.

Therefore, while the outlook could be positive if Viking continues to advance its drug pipeline, caution is warranted in the near term.

As Viking prepares for its earnings announcement, market watchers will be closely monitoring whether generated excitement translates into solid financial outcomes or if the stock’s rapid rise will face challenges.

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Image created using artificial intelligence via Midjourney.