Viking Therapeutics slips on planned stock, convertible offerings
VKTX•Shares fall after capital raise plans
Shares of Viking Therapeutics VKTX.O were down 8% at $38.32 post-market as the company looks to raise capital.
VKTX announced public offerings of $200 million in stock and $200 million in convertible bonds due Oct. 15, 2032.
VKTX shares surged about 36% to $40.85 on Tuesday after the company's obesity drug, VK2735, showed durable weight-loss benefit in patients in a study compared with those on placebo.
The company 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 and JPMorgan are joint bookrunners for both offerings.
VKTX shares added another 2% to close at $41.65 on Wednesday.
The San Diego, California-based firm has an approximate $4.9 billion market cap, based on about 116.65 million shares outstanding.
The average rating of 20 analysts is "buy"; median price target is $100, according to LSEG.
