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Viking Therapeutics Announces Pricing of $550 Million Public Offering of Common Stock

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Viking Therapeutics, Inc. announces the pricing of its underwritten public offering of 6,471,000 shares of common stock at $85.00 per share, aiming to raise approximately $550.0 million. The company granted underwriters an option to purchase additional shares, with all proceeds going to Viking.
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From a financial perspective, the public offering by Viking Therapeutics represents a significant capital infusion, which is expected to be approximately $550 million before deducting underwriting discounts and commissions and offering expenses. This influx of capital is crucial for a clinical-stage biopharmaceutical company, as it provides the financial resources needed for continued research and development, as well as for potential commercialization efforts. The offering price of $85.00 per share also suggests a strong market valuation, which may reflect investor confidence in Viking's pipeline and future prospects.

The granting of a 30-day option for underwriters to purchase additional shares could potentially raise additional capital, indicating a safeguard mechanism to capitalize on higher demand. This move is strategic as it provides a buffer to raise additional funds without the need for immediate further dilution, should the market appetite prove strong. The impact on current shareholders will be dilutive, but if the funds are deployed effectively into their pipeline, it could lead to long-term value creation.

The biopharmaceutical sector is highly competitive and capital-intensive. For Viking Therapeutics, securing a substantial amount of funding indicates that the company is positioning itself to advance its pipeline products, which could involve entering new clinical trials or scaling up manufacturing capabilities. Market reaction to such offerings can be mixed, as investors weigh the benefits of potential growth against the dilution of their shares.

It's important to consider the context of the broader market and Viking's specific circumstances. If Viking's therapies address unmet needs within metabolic and endocrine disorders, the future revenue potential could be significant. Analysts and investors will closely monitor the deployment of these funds, looking for milestones and indicators of progress within the company's pipeline. The timing and success of these developments can influence the stock's performance in both the short and long term.

In the realm of metabolic and endocrine disorders, the development of novel therapies is both a high-risk and high-reward endeavor. Viking Therapeutics' decision to raise capital through a public offering indicates that they may be nearing critical phases in their product development, such as advancing to late-stage clinical trials or preparing for regulatory submission and commercialization. The size of the offering is substantial, which may suggest confidence in their research outcomes and the potential market size for their therapies.

Investors will be interested in the specific indications Viking is targeting, as the prevalence of these conditions and the competitive landscape will greatly influence the potential return on investment. The efficacy and safety profiles of their drug candidates, as well as any partnerships or licensing agreements, will be key factors in their future success. The funds raised will likely accelerate these processes, but it's important to monitor how effectively the company manages these resources to navigate the complex regulatory environment and achieve market penetration.

SAN DIEGO, Feb. 28, 2024 /PRNewswire/ -- Viking Therapeutics, Inc. ("Viking") (Nasdaq: VKTX), a clinical-stage biopharmaceutical company focused on the development of novel therapies for metabolic and endocrine disorders, today announced the pricing of its  underwritten public offering of 6,471,000 shares of its common stock at a price to the public of $85.00 per share. The gross proceeds from the offering, before deducting underwriting discounts and commissions and offering expenses, are expected to be approximately $550.0 million. Viking has also granted the underwriters a 30-day option to purchase up to 970,650 additional shares of its common stock. All of the shares of common stock in the offering are to be sold by Viking. The offering is expected to close on or about March 4, 2024, subject to the satisfaction of customary closing conditions.

Morgan Stanley, Leerink Partners, William Blair, Raymond James, Stifel and Truist Securities are acting as joint book-running managers for the offering. Oppenheimer & Co. is acting as lead manager for the offering. BTIG, H.C. Wainwright & Co., Maxim Group LLC and Laidlaw & Company (U.K.) Ltd. are acting as co-managers for the offering.

Viking currently intends to use the net proceeds from the offering for continued development of its VK2809, VK2735 and VK0214 programs and for general research and development, working capital and general corporate purposes.

The public offering is being made pursuant to an automatic shelf registration statement on Form S-3 (File No. 333-273460), previously filed with the Securities and Exchange Commission (the "SEC") on July 26, 2023, and which automatically became effective upon filing. The securities may be offered only by means of a prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement and the accompanying prospectus relating to and describing the terms of the offering have been filed with the SEC and are available on the SEC's website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus, and when available, copies of the final prospectus supplement and the accompanying prospectus relating to the offering may also be obtained by contacting Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or by email at prospectus@morganstanley.com; or Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, Massachusetts 02109, by telephone at (800) 808-7525, ext. 6105, or by email at syndicate@leerink.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Viking Therapeutics, Inc.

Viking Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on the development of novel first-in-class or best-in-class therapies for the treatment of metabolic and endocrine disorders, with three compounds currently in clinical trials. Viking's research and development activities leverage its expertise in metabolism to develop innovative therapeutics designed to improve patients' lives. Viking's clinical programs include VK2809, a novel, orally available, small molecule selective thyroid hormone receptor beta agonist for the treatment of lipid and metabolic disorders, which is currently being evaluated in a Phase 2b study for the treatment of biopsy-confirmed non-alcoholic steatohepatitis (NASH) and fibrosis. In a Phase 2a trial for the treatment of non-alcoholic fatty liver disease (NAFLD) and elevated LDL-C, patients who received VK2809 demonstrated statistically significant reductions in LDL-C and liver fat content compared with patients who received placebo. Viking is also developing VK2735, a novel dual agonist of the glucagon-like peptide 1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP) receptors for the potential treatment of various metabolic disorders. Data from a Phase 1 and a Phase 2a trial evaluating VK2735 (dosed subcutaneously) for metabolic disorders demonstrated an encouraging safety and tolerability profile as well as positive signs of clinical benefit. The company is also evaluating an oral formulation of VK2735 in a Phase 1 trial. In the rare disease space, Viking is developing VK0214, a novel, orally available, small molecule selective thyroid hormone receptor beta agonist for the potential treatment of X-linked adrenoleukodystrophy (X-ALD). VK0214 is currently being evaluated in a Phase 1b clinical trial in patients with the adrenomyeloneuropathy (AMN) form of X-ALD. Viking holds exclusive worldwide rights to a portfolio of five therapeutic programs, including VK2809 and VK0214, which are based on small molecules licensed from Ligand Pharmaceuticals Incorporated.

Forward-Looking Statements

This press release contains forward-looking statements under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding Viking's expectations on the timing and completion of the offering and the anticipated use of proceeds therefrom. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially and adversely and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: risks and uncertainties associated with market and other conditions and the satisfaction of customary closing conditions related to the proposed public offering and other risks that are described in Viking's most recent periodic reports filed with the Securities and Exchange Commission, including Viking's Annual Report on Form 10-K for the year ended December 31, 2023, including the risk factors set forth in those filings. These forward-looking statements speak only as of the date hereof. Viking disclaims any obligation to update these forward-looking statements, except as required by applicable law.

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SOURCE Viking Therapeutics, Inc.

FAQ

What is the ticker symbol for Viking Therapeutics, Inc.?

The ticker symbol for Viking Therapeutics, Inc. is VKTX.

How many shares of common stock were offered by Viking Therapeutics, Inc.?

Viking Therapeutics, Inc. offered 6,471,000 shares of its common stock.

At what price were the shares offered by Viking Therapeutics, Inc.?

The shares were offered at a price of $85.00 per share by Viking Therapeutics, Inc.

How much is Viking Therapeutics, Inc. expecting to raise from the offering?

Viking Therapeutics, Inc. is expecting to raise approximately $550.0 million from the offering.

What option did Viking Therapeutics, Inc. grant to the underwriters?

Viking Therapeutics, Inc. granted the underwriters a 30-day option to purchase up to 970,650 additional shares of its common stock.

Viking Therapeutics, Inc.

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novel therapeutics for metabolic and endocrine disorders.