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
Viking Therapeutics’ quiet month 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. 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. Why Viking Therapeutics’ stock declined in July While all the above is good news, it’s not really significant new news, and didn’t serve as a catalyst to send the stock higher. Instead, the market focused on the cash needed to fund these trials.