STOCK TITAN

Viking Therapeutics Announces Proposed Public Offering of Common Stock

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Positive)
Tags
offering
Rhea-AI Summary
Viking Therapeutics, Inc. announces a public offering of $350 million of common stock with an option for additional $52.5 million. The proceeds will fund the development of key programs and general corporate purposes.
Positive
  • None.
Negative
  • None.

Viking Therapeutics' decision to commence an underwritten public offering of $350 million, with an additional option for underwriters to purchase up to $52.5 million, represents a significant capital-raising event. Such liquidity infusion is critical for a clinical-stage biopharmaceutical company, which often requires substantial funding to advance its drug development programs. The size of the offering indicates a strong need for capital, likely driven by the expensive nature of progressing clinical trials.

Investors should note that the success of the offering depends on market conditions, which can be influenced by broader economic factors and investor sentiment towards the biopharmaceutical sector. The involvement of reputable financial institutions as joint book-running managers may instill confidence in potential investors, possibly enhancing the offering's success.

The allocation of proceeds towards the development of Viking's lead programs suggests a strategic focus on advancing its most promising drug candidates. However, the inherent risk of clinical trials must be considered, as any setbacks could impact the company's valuation and future financing capabilities.

The net proceeds from Viking's proposed offering earmarked for the development of VK2809, VK2735 and VK0214 programs underscore the company's commitment to addressing metabolic and endocrine disorders. These therapeutic areas are of high interest due to the global prevalence of diseases like NASH (Non-alcoholic steatohepatitis) and hypercholesterolemia, which are targeted by VK2809 and VK0214, respectively.

Investors should be aware of the competitive landscape in these areas, as multiple companies are vying to bring new treatments to market. Viking's success will depend on the clinical efficacy and safety profiles of its drug candidates, as well as their ability to differentiate from existing and pipeline therapies. Positive trial results could significantly enhance Viking's market position and investor confidence, while any negative outcomes could have the opposite effect.

The announcement of Viking's public offering and its intended use of proceeds provides insights into the company's strategic priorities and market outlook. By allocating funds to specific programs, Viking is signaling to investors its confidence in these assets' potential market impact. The metabolic and endocrine disorder markets are growing, driven by an increase in associated conditions such as obesity and diabetes.

Market analysts will closely monitor the uptake of the offering, as it can serve as a barometer for investor appetite in the biopharmaceutical space, particularly for companies in the clinical stage. A successful offering may also indicate positive market sentiment and a willingness to invest in high-risk, high-reward biotech ventures.

SAN DIEGO, Feb. 27, 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 that it has commenced an underwritten public offering of $350.0 million of shares of its common stock. Viking also intends to grant the underwriters a 30-day option to purchase up to an additional $52.5 million of shares of its common stock. All of the shares of common stock to be sold in the proposed offering are to be sold by Viking. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the proposed offering may be completed, or as to the actual size or terms of the proposed offering.

Morgan Stanley, Leerink Partners, William Blair, Raymond James, Stifel and Truist Securities are acting as joint book-running managers for the proposed offering.

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

The proposed 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 proposed offering will be filed with the SEC and will be available on the SEC's website at www.sec.gov. When available, copies of the preliminary prospectus supplement and the accompanying prospectus relating to the proposed 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, size and completion of the proposed offering, Viking's intention to grant the underwriters a 30-day option to purchase additional shares, 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.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/viking-therapeutics-announces-proposed-public-offering-of-common-stock-302073312.html

SOURCE Viking Therapeutics, Inc.

Viking Therapeutics, Inc.'s ticker symbol is VKTX.

Viking Therapeutics, Inc. is planning to raise $350 million in the public offering with an option for an additional $52.5 million.

The net proceeds from the proposed offering will be used for the continued development of VK2809, VK2735, and VK0214 programs, as well as for general research and development, working capital, and general corporate purposes.

Morgan Stanley, Leerink Partners, William Blair, Raymond James, Stifel, and Truist Securities are acting as joint book-running managers for the proposed offering.

The proposed offering is being made pursuant to an automatic shelf registration statement on Form S-3 (File No. 333-273460), previously filed with the SEC.
Viking Therapeutics Inc

NASDAQ:VKTX

VKTX Rankings

VKTX Latest News

VKTX Stock Data

Pharmaceutical Preparation Manufacturing
Manufacturing
Link
Health Technology, Biotechnology, Manufacturing, Pharmaceutical Preparation Manufacturing
US
San Diego

About VKTX

novel therapeutics for metabolic and endocrine disorders.