Viking Therapeutics (NASDAQ:VKTX) just made a big splash, jumping by 21.3% on strong Q3 results that highlight a doubling of its cash reserves to $930 million. The financial boost puts Viking in a prime spot to accelerate its plans for VK2735, its obesity drug candidate that could shake up the weight loss market, currently dominated by heavyweights Novo Nordisk (NYSE:NVO) and Eli Lilly (NYSE:LLY). Anticipation is building ahead of ObesityWeek in early November, where fresh data on both injectable and oral forms of VK2735 will be unveiled, potentially laying the groundwork for a blockbuster obesity treatment.

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With R&D spending climbing to $22.8 million this quarter, Viking isn't just sitting on its cash; it's investing heavily in its pipeline. The VENTURE Phase 2 trial has already shown VK2735 delivering up to 14.7% weight loss in just 13 weeks, and the upcoming end-of-Phase 2 FDA meeting could soon clear the path for Phase 3. Meanwhile, the company is making headway in other high-potential programs, including VK2809 for NASH/MASH and VK0214 for X-linked adrenoleukodystrophy, both posting promising trial outcomes. This quarter's results signal more than just progressthey show a company positioning itself to take the lead in major therapeutic markets.

Armed with a bolstered balance sheet and strong clinical data, Viking is gearing up for a transformative period. Its financial strength and strategic focus on advancing key assets aren't just about hitting milestonesthey're about shifting the company's story from one of potential to one of tangible growth. For investors, the message is clear: Viking is set for an inflection point, with near-term catalysts that could propel it to new heights.

This article first appeared on GuruFocus.