Viking Therapeutics, Inc. (VKTX): A Bull Case Theory

We came across a bullish thesis on Viking Therapeutics, Inc. on Alpha Talon Investment Research’s Substack by AT Investment Research. In this article, we will summarize the bulls’ thesis on VKTX. Viking Therapeutics, Inc.'s share was trading at $36.15 as of December 15th.

Viking Therapeutics is a clinical-stage biotechnology company focused on metabolic and endocrine disorders, with its investment thesis centered on obesity, diabetes, and NASH. Positioned within the GLP-1/GIP treatment revolution, Viking is one of the few independent biotechs advancing both injectable and oral dual-agonist therapies, making it a strategically scarce asset.

Its lead program, VK2735, targets obesity and type-2 diabetes and operates in the same validated receptor class as Eli Lilly’s Mounjaro and Novo Nordisk’s Wegovy. Phase 2 data demonstrated roughly 14–15% mean weight loss over 13 weeks with strong tolerability, placing the asset squarely in line with current market leaders. Viking is now advancing two pivotal programs, VANQUISH (injectable) and VENTURE-Oral, with the oral formulation representing a potential paradigm shift if efficacy is sustained over longer durations, significantly expanding patient reach.

The company’s second major asset, VK2809, is a liver-targeted THR-β agonist for NASH and lipid disorders. Phase 2 results showed up to 55% median liver-fat reduction with a favorable safety profile, providing meaningful medium-term optionality despite regulatory complexity in NASH. Together, VK2735 and VK2809 position Viking at the intersection of two multi-billion-dollar markets, balancing near-term visibility with longer-dated upside.

Financially, Viking ended Q3 2025 with approximately $715 million in cash and no debt, giving it one of the cleanest balance sheets in biotech and sufficient runway to fund Phase 3 programs without near-term dilution. Commercialization of VK2735 is expected around 2028, with profitability following by 2029–2030. Base-case valuation implies an enterprise value of roughly $11.5 billion and %110/share a significant upside, while strategic scarcity and industry consolidation create credible M&A potential from large pharmaceutical players.

Previously we covered a bullish thesis on Viking Therapeutics, Inc. (VKTX) by Kontra Investments in February 2025, which highlighted the expanding obesity market, early VK2735 efficacy, tolerability advantages, and oral formulation potential. The company's stock price has appreciated approximately by 27.64% since our coverage. This is because investor optimism around clinical progress increased. The thesis still stands as obesity demand remains strong. AT Investment Research shares a similar view but emphasizes balance sheet strength, NASH optionality, and M&A potential.

Viking Therapeutics, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held VKTX at the end of the third quarter which was 43 in the previous quarter. While we acknowledge the risk and potential of VKTX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VKTX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.