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The company reported a loss of about $1.10 per share, which was slightly better than the $1.23 loss analysts expected. Because Viking is a clinical-stage biotech, it has no sales yet and spends its cash on research and drug trials. It ended the quarter with $502 million in cash, which is enough to fund its work for several years.
The most important news is that the Phase 3 trials for its injectable obesity drug are now fully enrolled. This is a critical final step before seeking government approval. Additionally, the company plans to start Phase 3 trials for its oral version by the end of the year. If the oral pill proves as effective as the injections, it could be a major advantage over current market leaders that require weekly shots.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
CEO Brian Lian sold shares worth roughly $4.9 million. While large sales by top executives can sometimes worry people, they are often planned well in advance for personal financial reasons. Given the company just reached a major milestone by enrolling its final-stage obesity trials, this does not appear to signal a lack of confidence in the business.
The company appointed Dorothy Gemmell to its board. She brings over twenty years of experience in the healthcare industry. This move adds expertise in bringing products to market, which will be important as Viking moves closer to finishing its clinical trials and potentially launching its first drugs.
Source: PRNewsWire
A law firm announced it is investigating whether some of Viking's officers and directors engaged in self-dealing, which means putting their own interests ahead of the company's. These types of investigations are common for biotech companies and often do not lead to actual lawsuits or damages. Unless a formal case is filed with specific evidence, this is a minor note for now.
Source: PRNewsWire
Analysts have consistently maintained their positive outlook on the stock following its recent quarterly earnings report. Nearly all 24 analysts rate it a buy, with an average price target of $94 that suggests 160% upside from today.
Viking has a history of reporting larger losses than expected, though it recently cleared a lower bar. For a company with no sales yet, these quarterly numbers matter less than trial updates.
| Expectation | |
|---|---|
| EPS | $-1.07 |
| Revenue | — |
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