Viking Therapeutics, Inc. (VKTX) saw its shares plummet 10.45% on Wednesday despite reporting positive updates across its clinical pipeline, including plans to advance its lead obesity drug candidate VK2735 into pivotal Phase 3 trials in the second quarter of 2025.

The steep decline came after the company reported a Q4 2024 loss of $0.32 per share, missing analyst estimates of $0.28 per share loss. However, the earnings miss appears to have been overshadowed by the promising clinical developments disclosed by Viking.

Among the key highlights, Viking announced plans to initiate Phase 3 studies evaluating the subcutaneous formulation of VK2735 for obesity in Q2 2025. Earlier data from a Phase 2 trial showed treatment with VK2735 led to clinically meaningful weight loss of up to 14.7%, along with an encouraging safety profile.

In addition, Viking reported positive data from a Phase 2a study assessing an oral tablet formulation of VK2735 in obese patients. The drug demonstrated dose-dependent weight loss of up to 8.3% after 57 days and was well-tolerated, setting the stage for further development of the oral formulation.

The company also highlighted best-in-class data from a Phase 2b trial evaluating its NASH drug candidate VK2809. The trial met its primary and secondary endpoints, with VK2809 showing statistically significant improvements in NASH resolution, fibrosis, and key lipid parameters linked to cardiovascular risk.

Viking's early-stage pipeline was bolstered by positive Phase 1b data for VK0214, its candidate for X-linked adrenoleukodystrophy (X-ALD), a rare neurodegenerative disease. Treatment with VK0214 resulted in significant reductions in plasma biomarkers of X-ALD, indicating potential therapeutic benefit.

Looking ahead, Viking plans to advance its internally developed dual amylin and calcitonin receptor agonist program for obesity into clinical trials in 2025, further expanding its metabolic disease pipeline.