Laidlaw Reiterates Buy Rating on Viking Therapeutics (VKTX) with $110 Price Target

VKTX reported 2Q26 financial results and corporate updates yesterday after the close. Our take is that formal VANQUISH and oral VK2735 Phase III studies are needed for potential approval of subQ and oral VK2735 in treating obesity. Despite this, successful outcomes from the ongoing maintenance studies (subQ/subQ and subQ/oral) could offer substantial benefits as a treatment, and likely differentiate VK2735 from other obesity therapies, given the empirically established supportive evidence generated in the approval process. VKTX reported 2Q26 financial results with a net loss of ($128.3MM) vs. Laidlaw ($154.6MM) and the Street ($144.8MM). Net loss/share was ($1.10) vs. ($1.34) for Laidlaw and ($1.23) for the Street. VKTX ended the quarter with $502MM cash which we estimate could support operations to completion of reports of both oral and subcutaneous Phase III study results, likely in 2028. As earlier guided, the overall timelines of the three developments did not change for VK2735. The two subQ VK2735 Phase III trials (VANQUISH-I and II) completed patient enrollment (VANQUISH-1 in 11/2025 and VANQUISH-II in 3/2026) with topline readout of the first study expected in late 3Q27, and the second in 4Q27 or 1Q28. With positive outcomes likely, we estimate an NDA filing could slate to 1H28 with potential approval in 1H29. The oral VK2735 in obesity Phase III study is expected to start in 4Q26. The third piece is the first ongoing VK2735 maintenance study will be subQ titration (21 weeks) followed by different subQ maintenance doses (12 weeks). Data readout is expected later in 3Q26. The second is subQ titration followed by a different oral maintenance doses study. This could start after the first maintenance study in 4Q26, with data readout scheduled in 1H27. The outcome from the subQ to subQ study could inform the dose selections (possibly 2 to 4 cohorts) for the upcoming VANQUISH extension studies to begin in 4Q26 or early 2027. We believe the maintenance study, if positive, could be an advantage of VK2735, especially if successfully incorporated into VANQUISH extension studies. This will likely provide physicians with empirically supported regimen options during the patient’s treatment journey. We are reiterating our Buy rating and $110 target price.

To receive a full copy of the report please contact llcapmkts@laidlawltd.com