Viking's ITC trade secret ruling against Ascletis is on appeal at Federal Circuit

Viking Therapeutics, Inc. (Nasdaq: VKTX) said in its 10-Q filed October 29, 2026 that its trade secret dispute with Ascletis is now in briefing at the U.S. Court of Appeals for the Federal Circuit. Ascletis filed its opening brief on June 15, 2026, and Viking filed its responsive brief on September 25, 2026. The company says oral argument is expected in the fourth quarter of 2027. Viking filed the underlying suit in December 2022 in the U.S. District Court for the Southern District of California, San Diego division. The 10-Q gives no case numbers.

Viking is the plaintiff. The defendants, which the filing calls the Ascletis Defendants, are Ascletis Bioscience Co., Ltd., Gannex Pharma Co., Ltd., Ascletis Pharmaceuticals Co., Ltd., Ascletis Pharma Inc. and Jinzi Jason Wu.

The case

Viking's district court complaint alleges, among other things, violation of the Defend Trade Secrets Act, violation of the California Uniform Trade Secrets Act, breach of contract, breach of the implied covenant of good faith and fair dealing, and tortious interference with contract. Viking also sued the same defendants at the International Trade Commission (ITC) for unlawful and unfair methods of competition. The company says the proceedings arise at least in part from the misappropriation of its trade secrets. In a risk factor, it adds that the district court suit includes claims about breach of confidential disclosure agreements.

On October 3, 2024, the ITC's Chief Administrative Law Judge issued a notice of his determination in Viking's favor. The ruling states that the Ascletis Defendants misappropriated Viking's trade secrets while under a Confidential Disclosure Agreement and engaged in discovery misconduct, warranting monetary and non-monetary sanctions.

Defendants

The five Ascletis Defendants are Ascletis Bioscience Co., Ltd., Gannex Pharma Co., Ltd., Ascletis Pharmaceuticals Co., Ltd., Ascletis Pharma Inc. and Jinzi Jason Wu. The 10-Q gives Wu's name but not his title. These are Viking's allegations and the ITC's determinations, and they are under appeal. Separately, Viking's competition discussion lists Ascletis Pharma Inc. among companies with active programs in obesity and in NASH/MASH, the two fields where Viking is developing VK2735 and VK2809.

Where it stands

On May 29, 2025, the full ITC affirmed the substantial majority of the Chief Administrative Law Judge's determinations in Viking's favor, including monetary and non-monetary sanctions. On September 26, 2025, the Ascletis Defendants appealed to the Federal Circuit, challenging the affirmance. Viking filed its own notice of appeal the same day, challenging a narrow portion of the ITC's decision that disagreed with the Chief Administrative Law Judge.

The district court action in California remains stayed pending a final, non-appealable ITC determination. Viking says it continues to vigorously pursue all legal remedies in the ITC appeal and the district court case, but that "there is no guarantee that we will be successful."

Why it matters to shareholders

Viking is the plaintiff. The 10-Q does not quantify the monetary sanctions the ITC affirmed. The district court case remains stayed until a final, non-appealable ITC determination, which the filing does not date. In its risk factors, Viking says: "There can be no assurance that we will be successful in this suit." It adds that lawsuits to protect its intellectual property rights "can be time consuming and costly."

Related matters

Viking is a defendant in a separate dispute with Ligand Pharmaceuticals Incorporated over the license to its TR-Beta Program, which includes VK2809 and VK0214. That case is pending in San Diego Superior Court.

Report an error

Companies in this story

VKTXViking Therapeutics, Inc.NASDAQ · United StatesOpen the desk