Viking Therapeutics falls on $275 mln stock, $225 mln convertible deals

Viking Therapeutics

24/09/2026 11:41

** Shares of Viking Therapeutics VKTX.O down 9.6% at $37.65 before the bell on Thurs after securing capital raise
** VKTX sells ~7.9 mln shares at $35 for $275 mln gross proceeds; offering price represents 16% discount to stock's last close
** It also announces offering of $225 mln 2% convertible bonds (CBs) due Oct 15, 2032; conversion price of $50.75 set 45% above the $35 offering price of the stock deal
** San Diego, California-based firm late Weds had targeted a $400 mln raise, split equally between stock and CBs
** On Tues, VKTX shares surged ~36% to $40.85 after co's obesity drug, VK2735, showed durable weight-loss benefit in patients in a study compared with those on placebo
** Co intends to use net proceeds from the offerings for clinical development, advancement and commercialization of its VK2735 program, and advancement of its VK3019 program, among other purposes
** Morgan Stanley, JP Morgan are joint bookrunners for both offerings, among others
** With ~116.65 mln shares outstanding, VKTX has approx $4.9 bln market cap
** Avg rating of 20 analysts covering the stock is "buy"; median PT $100, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))