Viking Therapeutics Inc. (VKTX) delivered a mixed bag on Wednesday evening, posting quarterly results that missed Wall Street's expectations while still managing to push shares higher in extended trading.
The Numbers
Viking reported a loss of $1.38 per share for the fourth quarter, significantly wider than the 89-cent loss analysts had penciled in. The company said the increased red ink was primarily driven by a massive ramp-up in research and development spending.
R&D expenses hit $153.5 million for the quarter, a considerable jump from $31 million in the same period a year earlier. The spending surge came from clinical studies, stock-based compensation, and higher salaries and benefits. Those increases were partially offset by lower manufacturing and preclinical study costs.
Management's Take
"The past year was an exceptional year for Viking, marked by rapid progress across our obesity portfolio," said Brian Lian, Ph.D., CEO of Viking.
Market Reaction
Despite missing earnings expectations, investors seemed comfortable with the company's investment in its pipeline. VKTX shares rose 8.58% to $31 in after-hours trading Wednesday.
