Viking Therapeutics' Q4 Losses Widen; Stock Drops Over 6% After Hours

Viking Therapeutics, Inc. (NASDAQ: VKTX), a clinical-stage biopharmaceutical company focused on developing novel therapies for metabolic and endocrine disorders, reported wider-than-expected losses for the fourth quarter of 2024. The company's shares dropped over 6% in after-hours trading following the release of its financial results. Viking Therapeutics' net loss for the quarter was $35.7 million, or $0.27 per share, compared to a net loss of $28.5 million, or $0.22 per share, in the same period last year. The company's revenue for the quarter was $1.2 million, down from $1.5 million in the fourth quarter of 2023.



Viking Therapeutics' cash and cash equivalents at the end of the quarter were $850 million, compared to $903 million at the end of the third quarter of 2024. The company attributed the decrease in cash to research and development expenses, as well as general and administrative expenses.



Viking Therapeutics' CEO, Brian Lian, Ph.D., stated, "2024 was an exciting and extremely productive year for Viking. During the year, the company reported positive data from four different clinical trials, including results from the Phase 2 VENTURE study of subcutaneous VK2735 for obesity, the Phase 1 study of an oral tablet formulation of VK2735 for obesity, the Phase 2b VOYAGE study of VK2809 for the treatment of MASH and fibrosis, and the Phase 1b study of VK0214 for X-ALD. Each of these studies successfully achieved their objectives with each in our view demonstrating best-in-class data."

However, investors seemed to focus more on the company's widening losses and decreasing cash position, leading to a significant drop in the stock price after hours. Viking Therapeutics' shares closed at $12.50 on Tuesday, down 6.5% from Monday's close. The stock has been volatile in recent months, with shares trading between $10 and $15 over the past year.



In conclusion, Viking Therapeutics reported wider-than-expected losses for the fourth quarter of 2024, leading to a significant drop in the company's stock price after hours. Despite the company's progress in its clinical pipeline, investors focused on the widening losses and decreasing cash position, highlighting the challenges faced by clinical-stage biopharmaceutical companies in maintaining investor confidence.