Viking Therapeutics CEO Sells Over $15 Million in Company Stock

Brian Lian, the President and CEO of Viking Therapeutics, Inc., has recently divested a significant number of his company’s shares, as indicated by a filing with the Securities and Exchange Commission. On September 20, 2024, Lian sold 216,130 shares of Viking Therapeutics stock, totaling over $15 million.

The shares were sold through multiple transactions at varying prices. A batch of 96,056 shares was sold at weighted average prices between $69.90 and $70.89, while another group of 119,874 shares traded between $70.90 and $71.89. Additionally, 200 shares were sold at a weighted average price of $71.97 to $72.00. These transactions were executed under a pre-arranged Rule 10b5-1 trading plan, which enables company insiders to sell stocks at predetermined intervals, reducing the risk of insider trading allegations.

Despite this substantial sale, Lian continues to hold a significant stake in the company, retaining 2,304,927 shares post-transaction. Such sales by high-ranking executives are common and are often part of personal financial and estate planning strategies.

Viking Therapeutics, based in San Diego, California, focuses on developing innovative therapies for metabolic and endocrine disorders. Investors in the pharmaceutical sector are closely monitoring the company’s stock performance and business developments.

In other news, Viking Therapeutics has made notable advancements in the biopharmaceutical field. The company reported encouraging results from its Phase 2 VENTURE trial for obesity treatment using VK2735 and the Phase 2b VOYAGE trial for NASH and fibrosis with VK2809. Following these developments, Viking Therapeutics boasts over $900 million in cash reserves, indicating a robust financial standing.

Morgan Stanley has reaffirmed its Overweight rating on the company, encouraged by early tolerability data from VK2735, which is being developed for weight loss therapy. Meanwhile, JPMorgan has initiated coverage on Viking Therapeutics, also giving it an Overweight rating as the company nears significant milestones with its drug candidate, oral-2735. Truist Securities has maintained a Buy rating, suggesting that recent market reactions may present opportunities for investors to acquire shares.

These developments highlight the commitment of Viking Therapeutics to advancing its drug candidates and extending its clinical programs. Plans are in place to move VK2735 into Phase 3 development for obesity and to explore monthly dosing options, further enhancing the company’s position within the industry.

For potential investors, it’s worth noting that despite Brian Lian’s share sale, Viking Therapeutics maintains a market capitalization of $7.76 billion. The company has not yet turned a profit, reporting an operating loss of $124.68 million over the past year, yet its stock has experienced a remarkable return of 429.45% in that time.

The company’s financial health appears solid, with more cash than debt and liquid assets that surpass short-term obligations. However, its Price/Book ratio stands at 8.48, suggesting that the stock may be trading at a premium relative to its book value, which could indicate either market optimism about its future or a potential overvaluation concern.

In conclusion, for those interested in the financial metrics and performance of Viking Therapeutics, thorough research and analysis are advisable, as numerous indicators signal a complex but potentially rewarding investment landscape.