Viking Therapeutics (NASDAQ: VKTX) saw a sharp plummet of around 9.91% in pre-market trading on Thursday, following the company's Q4 2024 earnings release and pipeline updates that failed to meet investor expectations.

For the fourth quarter, Viking reported a loss of $0.32 per share, missing consensus analyst estimates of a $0.28 per share loss. This earnings miss appears to have contributed significantly to the stock's pre-market decline, as investors reacted to the disappointing financial results.

On the pipeline front, Viking announced plans to initiate Phase 3 trials for its lead obesity drug candidate VK2735 in the second quarter of 2025. However, some analysts described the updates on VK2735 as "incremental," suggesting a lack of major new developments or breakthroughs for the highly anticipated program. This sentiment may have further weighed on investor confidence.

Viking did provide positive data updates for other candidates in its pipeline, including Phase 2b results for its NASH drug VK2809, demonstrating statistically significant improvements in NASH resolution, fibrosis, and key lipid parameters. The company also reported encouraging Phase 1b data for its X-ALD candidate VK0214, with significant reductions in plasma biomarkers observed.

Despite these positive updates, Viking's stock appears to have been dragged down by the lack of major breakthroughs or substantial progress on its key programs, combined with the Q4 earnings miss. Investors may have been hoping for more significant developments, particularly around the VK2735 obesity program, leading to the steep pre-market decline.