Viking Therapeutics (VKTX) stock plummeted 6.75% in after-hours trading on Wednesday, despite the company reporting better-than-expected Q4 2024 earnings and providing positive updates on its clinical pipeline, including plans to initiate Phase 3 trials for its obesity drug candidate VK2735.

In its Q4 2024 financial results, Viking reported a loss of $0.32 per share, which was lower than the consensus estimate of $0.28 per share loss. The company ended the year with a strong cash position of $903 million, providing ample resources to advance its clinical programs.

One of the key highlights was Viking's plan to initiate Phase 3 trials evaluating the subcutaneous formulation of VK2735 for obesity in the second quarter of 2025. VK2735 is a dual agonist of the GLP-1 and GIP receptors, and previously demonstrated promising results in Phase 2 studies, including clinically meaningful reductions in body weight and an encouraging safety profile.

Additionally, Viking reported positive data from studies of its other drug candidates, including VK2809 for the treatment of NASH and fibrosis, and VK0214 for X-ALD, a rare neurodegenerative disease. The company believes VK2809's data affirms its best-in-class efficacy on both NASH resolution and fibrosis improvement, along with the potential for cardiovascular benefit through improvement in plasma lipids.