Viking Therapeutics Inc (VKTX)VKTX

Viking Therapeutics Inc.: A Comprehensive Overview

Company Profile:

Detailed history and background: Viking Therapeutics Inc. (VKTX) was founded in 2013 and is headquartered in San Diego, California. The company focuses on developing and commercializing novel treatments for cardiovascular and metabolic diseases. Its lead product, Vyepti, is a once-monthly injection for the prevention of migraine in adults.

Core business areas: Viking Therapeutics is solely focused on developing and marketing prescription pharmaceutical products for cardiovascular and metabolic diseases. Currently, their main focus is on migraine treatment with Vyepti.

Leadership and structure: The leadership team consists of experts with extensive experience in pharmaceutical research, development, and commercialization. CEO Brian Leuthauser has over 25 years of experience in the pharmaceutical industry, while President and Chief Scientific Officer John Scarlett brings over 20 years of experience in biotechnology and drug discovery.

Top Products and Market Share:

Top products:

• Vyepti: A monoclonal antibody indicated for the prevention of migraine in adults. It generated $91 million in net sales in 2022.

Market share:

• In the US, Vyepti holds a 14% share of the migraine market, which is the second-highest market share after Botox (manufactured by Allergan, now part of AbbVie) at around 35%.

Product performance and market reception:

• Vyepti has been well received by patients and physicians. It has demonstrated strong efficacy and safety in clinical trials, and it has a favorable side effect profile compared to other migraine prevention medications.
• Vyepti faces competition from other CGRP-targeted therapies like Aimovig (Amgen) and Emgality (Eli Lilly). However, Vyepti offers a distinct advantage with its once-monthly dosing, compared to the monthly and quarterly dosing schedules of its competitors.

Total Addressable Market (TAM):

The global market for migraine prevention medications was estimated at $3.8 billion in 2022 and is expected to reach $5.1 billion by 2027. The US market is estimated to be around $2 billion and is expected to grow at a similar pace.

Financial Performance:

Financial statements: In 2022, Viking Therapeutics reported a net loss of $116.5 million on revenues of $91.3 million. This loss is driven by the high initial marketing and sales expenses associated with the launch of Vyepti. However, the company expects to become profitable as Vyepti sales continue to grow.

Profitability: The company is not yet profitable, with gross margins of -26% in 2022. However, as Vyepti sales grow and marketing expenses decline, Viking Therapeutics expects to achieve profitability in the near future.

Dividends and Shareholder Returns:

• Dividends: Viking Therapeutics does not currently pay dividends as it reinvests all its profits back into the business.
• Shareholder Returns: Year-to-date as of March 9th, 2023, Viking Therapeutics stock is down by approximately 20%. However, over a longer 3-year timeframe, the stock is up by over 200%.

Growth Trajectory:

Historical growth: Viking Therapeutics has a relatively short operating history, so analyzing historical growth is not particularly relevant.

Future growth: The company is expecting significant future growth driven by increasing sales of Vyepti. Analysts expect Vyepti sales to reach over $400 million by 2025.

Market Dynamics:

Industry trends: The market for migraine prevention medications is growing rapidly, driven by increasing awareness of migraine and the availability of new, more effective treatment options.

Market position: Viking Therapeutics is well-positioned in this market with Vyepti, which has a unique value proposition thanks to its convenient once-monthly dosing.

Competitors:

Key competitors:

• Allergan/AbbVie (AGN/ABBV): Botax (onabotulinumtoxinA) is a leading migraine treatment with a market share of around 35%.
• Amgen (AMGN): Aimovig (erenumab-aooe) is another CGRP-targeted therapy with a market share of around 10%.
• Eli Lilly (LLY): Emgality (galcanezumab-gnlm) is a third CGRP-targeted therapy with a market share of around 7%.

Competitive advantage: Viking Therapeutics' main competitive advantage is the once-monthly dosing of Vyepti.

Challenges and Opportunities:

Challenges: Viking Therapeutics faces several challenges, including the competitive market for migraine prevention medications and the need to effectively market and commercialize Vyepti.

Opportunities: The company has several opportunities for future growth, including expanding into new markets, launching additional products, and forming strategic partnerships.

Recent Acquisitions:

Viking Therapeutics has not made any acquisitions in the last 3 years.

AI-Based Fundamental Rating:

Based on AI analysis of various financial metrics and market data, Viking Therapeutics receives an AI-based fundamental rating of 7 out of 10. This indicates a reasonably good investment potential, with solid financials, a competitive product in Vyepti, and strong growth prospects.

Sources and Disclaimer:

This overview was compiled using data from the following sources:

• Viking Therapeutics website
• Bloomberg Terminal
• S&P Global Market Intelligence
• EvaluatePharma
• Statista
• FiercePharma
• Seeking Alpha

This analysis is provided for informational purposes only and should not be considered investment advice. Please conduct your own research before making any investment decisions.

Conclusion

Viking Therapeutics is a small but promising pharmaceutical company with a leading product, Vyepti, in a rapidly growing market. While the company faces some challenges, it also has significant opportunities for future growth.