SAN DIEGO, Nov. 7, 2018 /PRNewswire/ -- Viking
Therapeutics, Inc. (Viking) (NASDAQ: VKTX), a clinical-stage
biopharmaceutical company focused on the development of novel
therapies for metabolic and endocrine disorders, today announced
its financial results for the third quarter ended September 30, 2018, and provided an update on its
clinical pipeline and other corporate developments.
Highlights from, and Subsequent to, the Quarter Ended
September 30, 2018
"The third quarter was an exciting period for Viking as we made
several important announcements regarding our pipeline programs,"
stated Brian Lian, Ph.D., chief
executive officer of Viking Therapeutics. "With our VK2809
program for NASH, we announced topline data from a Phase 2 trial in
patients with NAFLD and elevated LDL-C. These results showed
excellent safety and tolerability, as well as unprecedented
reductions in liver fat from an oral agent, demonstrating
best-in-class efficacy on this key endpoint. We look forward
to presenting the results of this study at the upcoming AASLD
meeting. Also in September, we presented the results of a
Phase 2 trial of VK5211, our novel selective androgen receptor
modulator (SARM), in patients recovering from hip fracture, at the
2018 meeting of the American Society for Bone and Mineral Research
(ASBMR). These data, which showed the impressive effects of
VK5211 on muscle growth and body composition, were highlighted
during the oral plenary session of the meeting, and we were honored
to receive the Most Outstanding Clinical Abstract award by the
conference organizers. In addition, in early October the
results of an in vivo study of VK2809 in glycogen storage
disease were presented at the oral plenary session at the
88th Annual Meeting of the American Thyroid Association
(ATA). These data highlighted VK2809's effect on reducing
inflammatory signaling and improving autophagy, characteristics
that are relevant to broader settings, such as NASH. In
corporate matters, we raised $176
million during the quarter, strengthening our balance sheet
and giving us runway beyond 2020."
Pipeline and Corporate Highlights
- Phase 2 study of VK2809 in patients with NAFLD and elevated
LDL-C achieves primary and secondary endpoints. In
September 2018, the company announced
positive top-line results from a 12-week Phase 2 study of VK2809,
its novel liver-selective thyroid receptor beta agonist.
Top-line study results include:
-
- Reduction in LDL-C: Patients receiving
VK2809 demonstrated statistically significant reductions in LDL-C
compared with placebo-treated patients. In addition,
VK2809-treated patients demonstrated statistically significant
improvements in other lipids, including the atherogenic proteins
apolipoprotein B and lipoprotein (a).
- Reduction in Liver Fat Content: Patients
receiving VK2809 experienced statistically significant reductions
in liver fat content, as assessed by MRI-derived proton
density fat fraction (MRI-PDFF), relative to placebo after 12 weeks
of treatment. Highlights of these data are outlined
below.
|
VK2809
10 mg
QOD
|
VK2809
10 mg
QD
|
VK2809
combined
|
Placebo
|
Median relative
change in liver fat
by MRI-PDFF
|
-56.5%
(p<0.01)
|
-59.7%
(p<0.01)
|
-58.1%
(p<0.01)
|
-8.9%
|
Percentage of
patients experiencing ≥ 30%
reduction in liver fat
|
76.9%
(p=0.012)
|
90.9%
(p<0.01)
|
83.3%
(p<0.01)
|
18.2%
|
- Approximately 67%, or two-thirds, of all patients who received
VK2809 in this study experienced a 50% or greater reduction in
liver fat.
- Safety and Tolerability: No serious adverse events
(SAEs) were reported among patients receiving VK2809 or placebo.
VK2809 was also shown to be well-tolerated in this
study.
The results from this trial will be presented as part of the
Oral Late-Breaker session of The Liver Meeting® 2018,
the annual meeting of the American Association for the Study of
Liver Diseases (AASLD), on Monday, November
12th, in San
Francisco.
The company is currently in the process of planning for further
studies of VK2809 in biopsy-confirmed NASH, which are anticipated
to begin in 2019.
- IND-enabling work for VK0214 in X-linked
adrenoleukodystrophy (X-ALD) progressing, IND filing planned
in 2019. VK0214 is a novel, orally available small
molecule thyroid receptor agonist that possesses selectivity for
the beta receptor subtype. The company is conducting
IND-enabling work for this program and plans to file an IND to
initiate a proof-of-concept study in X-ALD in 2019.
- Positive Phase 2 study results of VK5211 in patients
recovering from hip fracture presented in plenary oral session at
ASBMR 2018 Annual Meeting. VK5211 is an orally available,
non-steroidal SARM designed to selectively stimulate muscle and
bone formation with reduced activity in peripheral tissues such as
skin and prostate. On September
30, the results of the company's Phase 2 trial of VK5211 in
patients recovering from hip fracture were presented during the
plenary session of the Annual Meeting of the American Society for
Bone and Mineral Research (ASBMR). In addition, the abstract
was awarded the 2018 Most Outstanding Clinical Abstract Award from
the conference organizers. The presentation highlighted
VK5211's significant effects on muscle and body composition in hip
fracture patients. Among the notable results from this study
was the observation that patients receiving VK5211 gained weight,
added muscle, and lost fat content compared with patients receiving
placebo.
During the third quarter, Viking received written correspondence
from the FDA, in response to the company's Type C meeting questions
related to potential registration endpoints that might be utilized
to evaluate VK5211 in the hip fracture setting. The company
is currently exploring partnering opportunities that will allow us
to optimize the value of VK5211 and move the program forward in the
most efficient manner possible.
- Balance sheet strengthened through $176 million equity financing. In the
third quarter of 2018, Viking raised approximately $176 million in gross proceeds through the
issuance of common stock. These proceeds will be used to
support the company's ongoing development programs, partnering
efforts and other corporate activities.
Q3 2018 Financial Highlights
Three Months Ended September 30, 2018
and 2017
Research and development expenses for the three months ended
September 30, 2018 were $5.7 million compared to $3.5 million for the same period in 2017.
The increase was primarily due to increased manufacturing expenses
related to our drug candidates, pre-clinical study efforts, use of
third party consultants and stock-based compensation, partially
offset by a decrease in clinical study expenses.
General and administrative expenses for the three months ended
September 30, 2018 were $1.7 million compared to $1.2 million for the same period in 2017.
The increase was primarily due to increased expenses related to
stock-based compensation, salaries and benefits, professional
services, insurance expense, legal and patent expenses, and
franchise taxes.
For the three months ended September 30,
2018, Viking reported a net loss of $6.6 million, or $0.11 per share, compared to a net loss of
$6.1 million, or $0.22 per share, in the corresponding period in
2017. The increase in net loss for the three months ended
September 30, 2018 was primarily due
to the increase in research and development expenses noted
previously, partially offset by decreased expenses related to the
change in fair value of the debt conversion feature liability and
an increase in interest income.
Nine Months Ended September 30,
2018 and 2017
Research and development expenses for the nine months ended
September 30, 2018 were $14.0 million compared to $10.7 million for the same period in 2017.
The increase was primarily due to increased expenses related to
pre-clinical study efforts, manufacturing related to our drug
candidates, use of third party consultants, and stock-based
compensation, partially offset by a decrease in clinical study
expenses.
General and administrative expenses for the nine months ended
September 30, 2018 were $5.2 million compared to $3.9 million for the same period in 2017.
The increase was primarily due to increased expenses related to
stock-based compensation, salaries and benefits, professional
services, insurance, legal and patent expenses, and franchise
taxes.
For the nine months ended September 30,
2018, Viking reported a net loss of $16.8 million, or $0.32 per share, compared to a net loss of
$16.5 million, or $0.67 per share, in the corresponding period in
2017. The net loss for the nine months ended September 30, 2018 was consistent with the net
loss in the corresponding period in 2017 primarily due to the
increase in research and development expenses noted previously
offset by an increase in other income related to the decrease in
the fair value of the debt conversion feature liability, as well as
an increase in interest income.
Balance Sheet as of September 30,
2018
At September 30, 2018, Viking held
cash, cash equivalents and short-term investments totaling
$304.2 million. As of
October 31, 2018, Viking had
71,459,857 shares of common stock outstanding.
Conference Call
Management will host a conference call to discuss the company's
third quarter financial results today at 4:30 pm Eastern. To participate on the
conference call, please dial (844) 850-0543 from the U.S. or (412)
317-5199 from outside the U.S. In addition, following the
completion of the call, a telephone replay will be accessible until
November 14, 2018 by dialing (877)
344-7529 from the U.S. or (412) 317-0088 from outside the U.S. and
entering conference ID #10125870. Those interested in
listening to the conference call live via the internet may do so by
visiting the Investor Relations section of Viking's website at
www.vikingtherapeutics.com. An archive of the webcast will be
available for 30 days on the company's website at
www.vikingtherapeutics.com.
About Viking Therapeutics, Inc.
Viking Therapeutics, Inc. is a clinical-stage biopharmaceutical
company focused on the development of novel, first-in-class or
best-in-class therapies for metabolic and endocrine
disorders. The company's research and development activities
leverage its expertise in metabolism to develop innovative
therapeutics designed to improve patients' lives. The
company's clinical programs include VK2809, a small molecule
thyroid beta agonist. In a Phase 2 trial for the treatment of
non-alcoholic fatty liver disease and elevated LDL-C, patients who
received VK2809 demonstrated statistically significant reductions
in LDL-C and liver fat content. VK2809 was shown to be safe and
well-tolerated in the study. The company is also developing
VK5211, an orally available, non-steroidal selective androgen
receptor modulator. In a Phase 2 trial in patients recovering
from hip fracture, patients who received VK5211 experienced
significant improvements in measures of lean body mass compared to
patients who received placebo. The company is also developing
VK0612, a first-in-class, orally available drug candidate in Phase
2 development for type 2 diabetes. Additional programs
include a novel and selective agonist of the thyroid beta receptor
for X-linked adrenoleukodystrophy, as well as two earlier-stage
programs targeting metabolic diseases and anemia. Viking
holds exclusive worldwide rights to a portfolio of five therapeutic
programs in clinical trials or preclinical studies, including those
noted above, which are based on small molecules licensed from
Ligand Pharmaceuticals Incorporated.
Follow Viking on Twitter @Viking_VKTX.
Forward-Looking Statements
This press release contains forward-looking statements
regarding Viking Therapeutics, Inc., under the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995, including statements about Viking's expectations regarding
its development activities, timelines and milestones, as well as
the company's goals and plans regarding VK2809, VK5211 and
VK0214 and their respective prospects. Forward-looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially and adversely and reported
results should not be considered as an indication of future
performance. These risks and uncertainties include, but are not
limited to: risks associated with the success, cost and timing of
Viking's product candidate development activities and clinical
trials, including those for VK2809 and VK5211; risks that prior
clinical and preclinical results may not be replicated; risks
regarding regulatory requirements; and other risks that are
described in Viking's most recent periodic reports filed with the
Securities and Exchange Commission, including Viking's Annual
Report on Form 10-K for the year ended December 31, 2017, and subsequent Quarterly
Reports on Form 10-Q, including the risk factors set forth in those
filings. These forward-looking statements speak only as of the date
hereof. Viking disclaims any obligation to update these
forward-looking statements except as required by law.
Viking
Therapeutics, Inc.
Statements of Operations and Comprehensive Loss
(In thousands, except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Revenues
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
5,687
|
|
|
|
3,465
|
|
|
|
13,951
|
|
|
|
10,708
|
|
General and
administrative
|
|
|
1,707
|
|
|
|
1,227
|
|
|
|
5,173
|
|
|
|
3,935
|
|
Total operating
expenses
|
|
|
7,394
|
|
|
|
4,692
|
|
|
|
19,124
|
|
|
|
14,643
|
|
Loss from
operations
|
|
|
(7,394)
|
|
|
|
(4,692)
|
|
|
|
(19,124)
|
|
|
|
(14,643)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value
of debt conversion feature liability
|
|
|
—
|
|
|
|
(1,136)
|
|
|
|
1,398
|
|
|
|
(288)
|
|
Amortization of debt
discount
|
|
|
—
|
|
|
|
(256)
|
|
|
|
(404)
|
|
|
|
(1,024)
|
|
Amortization of
financing costs
|
|
|
(30)
|
|
|
|
(17)
|
|
|
|
(90)
|
|
|
|
(537)
|
|
Interest income
(expense), net
|
|
|
824
|
|
|
|
2
|
|
|
|
1,397
|
|
|
|
(1)
|
|
Total other income
(expense), net
|
|
|
794
|
|
|
|
(1,407)
|
|
|
|
2,301
|
|
|
|
(1,850)
|
|
Net loss
|
|
|
(6,600)
|
|
|
|
(6,099)
|
|
|
|
(16,823)
|
|
|
|
(16,493)
|
|
Other comprehensive
loss, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss)
on securities
|
|
|
30
|
|
|
|
2
|
|
|
|
(97)
|
|
|
|
3
|
|
Comprehensive
loss
|
|
$
|
(6,570)
|
|
|
$
|
(6,097)
|
|
|
$
|
(16,920)
|
|
|
$
|
(16,490)
|
|
Basic and diluted net
loss per common share
|
|
$
|
(0.11)
|
|
|
$
|
(0.22)
|
|
|
$
|
(0.32)
|
|
|
$
|
(0.67)
|
|
Weighted-average
shares used to compute basic and diluted net loss per
share
|
|
|
61,232
|
|
|
|
27,470
|
|
|
|
52,943
|
|
|
|
24,666
|
|
Viking
Therapeutics, Inc.
Balance Sheets
(In thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
September 30,
2018
|
|
|
December 31,
2017
|
|
|
|
(Unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
169,506
|
|
|
$
|
8,988
|
|
Short-term investments
– available for sale
|
|
|
134,656
|
|
|
|
11,587
|
|
Prepaid clinical trial
and preclinical study costs
|
|
|
1,847
|
|
|
|
887
|
|
Prepaid expenses and
other current assets
|
|
|
607
|
|
|
|
389
|
|
Total current
assets
|
|
|
306,616
|
|
|
|
21,851
|
|
Deferred public
offering and other financing costs
|
|
|
180
|
|
|
|
270
|
|
Total
assets
|
|
$
|
306,796
|
|
|
$
|
22,121
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,215
|
|
|
$
|
1,529
|
|
Other accrued
liabilities
|
|
|
3,528
|
|
|
|
2,257
|
|
Accrued interest,
current
|
|
|
—
|
|
|
|
22
|
|
Convertible notes
payable, current (net of discount of $0 and $404 at September 30,
2018 and December 31, 2017, respectively)
|
|
|
—
|
|
|
|
3,451
|
|
Debt conversion
feature liability, current
|
|
|
—
|
|
|
|
1,398
|
|
Total current
liabilities
|
|
|
4,743
|
|
|
|
8,657
|
|
Total
liabilities
|
|
|
4,743
|
|
|
|
8,657
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Preferred stock,
$0.00001 par value: 10,000,000 shares authorized at September 30,
2018 and December 31, 2017; no shares issued and outstanding at
September 30, 2018 and December 31, 2017
|
|
|
—
|
|
|
|
—
|
|
Common stock, $0.00001
par value: 300,000,000 shares authorized at September 30, 2018 and
December 31, 2017; 71,284,604 and 35,817,104 shares issued and
outstanding at September 30, 2018 and December 31, 2017,
respectively
|
|
|
1
|
|
|
|
—
|
|
Additional paid-in
capital
|
|
|
399,847
|
|
|
|
94,339
|
|
Accumulated
deficit
|
|
|
(97,678)
|
|
|
|
(80,855)
|
|
Accumulated other
comprehensive loss
|
|
|
(117)
|
|
|
|
(20)
|
|
Total stockholders'
equity
|
|
|
302,053
|
|
|
|
13,464
|
|
Total liabilities and
stockholders' equity
|
|
$
|
306,796
|
|
|
$
|
22,121
|
|
View original
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SOURCE Viking Therapeutics, Inc.