When bad news drops, investors have a tendency to sell first and ask questions later. Let's take a closer look at why Viking Therapeutics fell, and what's left of its late-stage pipeline to see if it could be a bad-news buy on the dip.

The oral formulation led to up to 12.2% weight loss over three months, a weaker outcome versus late-stage treatments from Eli Lilly and Novo Nordisk.

Viking Therapeutics Inc.’s worst stock drop in nine years has handed traders betting against the company a gain big enough to turn their money-losing year into a profitable one.