Viking Therapeutics Declined in July, and why its Long-Term Prospects are Undiminished
In a slow news month for the company, investors focused on the cost of its phase 3 trials rather than their benefits.
Overview
Shares in Viking Therapeutics (NASDAQ: VKTX) declined by 18.6% in July, according to data from S&P Global Market Intelligence. The decline came during a slow month for newsflow in its pipeline, as investors began to fret about the company's financial position.
The healthcare company delivered its second-quarter earnings report at the end of the month and confirmed that its phase 3 trials for its weight loss drug VK2735 in subcutaneous (injection) form were fully enrolled and proceeding in line with management's plans, and also that it continued to expect its phase 3 trials for VK2735 (oral) to begin in the fourth quarter. Finally, on VK2736, management confirmed that the phase 1 maintenance trial will report results this quarter.
Details
As a reminder, VK2735 is being developed as a dual-formulation therapy, in which an initial injectable dose can be followed by an oral maintenance dose. It's an exciting possibility because VK2735 has demonstrated the ability to produce a steeper velocity of weight loss than its peers in previous trials.
Source
Originally published at www.fool.com.