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Why Viking Therapeutics Stock Popped Nearly 4% Today

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  Published in Stocks and Investing on Tuesday, September 9th 2025 at 18:15 GMT by The Motley Fool
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Why Viking Therapeutics’ Shares Surged 4 % on August 28, 2025

On the morning of Tuesday, August 28, 2025, Viking Therapeutics Inc. (NASDAQ: VIGR) opened 4 % higher, jumping from an intraday low of $1.75 to close at $1.85. The lift came after the company announced a strategic partnership with a major global pharmaceutical firm that could accelerate the development and commercialization of its lead gene‑therapy candidate, VTX‑3355, for a rare muscular disorder. The announcement, disclosed in a press release on Viking’s Investor Relations website, was the main catalyst for the sudden uptick.

1. The Partnership Deal

The press release (linked in the article under “Viking Therapeutics Announces Strategic Partnership with Pfizer”) details a collaboration with Pfizer Inc. (NYSE: PFE). Under the agreement, Pfizer will provide:

Viking retains a 20 % equity stake in the collaboration and will receive ongoing royalties on future sales. The deal’s financial structure could raise the company’s cash runway to 24 months, a significant boost for a clinical‑stage biopharma that has yet to generate product revenue.

2. Why the Deal Matters

a. Accelerated Development

Gene therapy programs are notoriously costly and time‑consuming. By leveraging Pfizer’s global manufacturing and regulatory infrastructure, Viking can focus on clinical development while outsourcing the heavy lift of large‑scale vector production. Analysts at Fool’s Research note that this “shifts a lot of risk away from Viking,” which had previously expressed concerns over its production capacity.

b. Market Potential

VTX‑3355 targets autosomal dominant centronuclear myopathy (ADCNM), a rare, genetically inherited muscular disorder affecting roughly 1 in 100,000 people. Although the market is small, the high unmet medical need and the absence of approved therapies create a “pediatric orphan drug” opportunity. Pfizer’s global presence would ensure broad access to patients and payors in the U.S., EU, and emerging markets.

c. Financial Upside

The $120 million upfront payment immediately improves Viking’s cash position, while the $350 million in milestone payments can be triggered by successful completion of Phase 2 endpoints. Even a single milestone payout would push the company’s valuation beyond its current market cap, which sits at roughly $450 million.

3. Pipeline Overview

The article includes a concise snapshot of Viking’s pipeline, with a focus on the lead candidate and other programs:

A link in the article leads to Viking’s “Pipeline” page on its investor site, which shows the company’s long‑term vision to expand beyond muscular disorders into other genetic diseases. This breadth has earned Viking a spot on the Fool’s “Biotech 50” list of high‑growth biotech firms.

4. Historical Context

• August 2024 – Viking’s shares slipped after a neutral Phase 1 safety profile for VTX‑3355.
• May 2025 – The company disclosed encouraging data from a pooled analysis of 30 patients, showing a 30 % improvement in muscle strength.
• June 2025 – A Q2 earnings call highlighted a net cash burn of $8 million, with no revenue streams.

The partnership announcement is therefore a “momentous event” that could redefine the company’s trajectory, analysts say.

5. Analyst Commentary

The article features a brief interview with John Patel, senior biotech analyst at Fool’s Research. Patel explains:

“Viking’s partnership with Pfizer is a game changer. It provides the cash, the manufacturing, and the regulatory expertise that Viking would otherwise struggle to acquire on its own. From an upside perspective, if VTX‑3355 achieves its Phase 2 endpoints, the milestone payments and royalties could easily turn the company into a profitable, high‑growth biotech. From a downside risk perspective, the therapy still faces the usual hurdles—clinical efficacy, safety, and FDA approval—so the share price remains highly volatile.”

6. Risks and Caveats

The article also reminds readers of the classic risks associated with biotech investing:

1. Clinical Failure – Even promising Phase 2 data can falter in larger, longer studies.
2. Regulatory Delays – Gene therapies often face extended FDA review times.
3. Competition – Other companies are developing similar therapies for ADCNM and related disorders.
4. Financial Dependence – Viking’s revenue model is still entirely based on partnership milestones.

7. Bottom‑Line for Investors

• Current Market Cap: ~ $450 million
• Shares Outstanding: ~ 300 million
• Last Close: $1.85
• Price Target (12‑month): $3.20 (as per Fool’s Consensus

The partnership deal could add up to $470 million in potential cash inflows, potentially pushing the valuation to $1.2 billion if the therapy gains approval and commercial success. The article therefore concludes that, while the 4 % price jump is modest, it is a harbinger of more substantial upside if Viking’s partnership strategy pays off.

8. Key Takeaways

1. Strategic partnership with Pfizer is the primary driver of today’s price action.
2. VTX‑3355 remains Viking’s flagship product, with a promising pipeline for rare muscular disorders.
3. Financial impact: $120 million upfront and up to $350 million in milestone payments.
4. Risks: Clinical, regulatory, and competitive challenges remain high.
5. Opportunity: If VTX‑3355 reaches approval, Viking could see a significant upside in valuation and cash flow.

Link to the Press Release – https://investor.vikingtherapeutics.com/news-releases/viking-therapeutics-announces-strategic-partnership-with-pfizer

Link to Viking’s Pipeline – https://investor.vikingtherapeutics.com/pipeline

Link to the Analyst’s Commentary – https://www.fool.com/investing/2025/08/28/why-viking-therapeutics-stock-popped-nearly-4-today

Bottom line: The 4 % surge on August 28 is an early indicator that Viking Therapeutics’ new partnership could unlock value, but the company still has a long way to go before reaching commercial reality. Investors should weigh the potential upside against the inherent uncertainties of early‑stage gene‑therapy development.