Viking Therapeutics plans $400M raise via stock and note offerings

Viking Therapeutics, Inc. (Nasdaq: VKTX) announced plans to raise $400.0 million through two separate public offerings, consisting of $200.0 million in common stock and $200.0 million in convertible senior notes due 2032.

The company has also granted underwriters a 30-day option to purchase up to an additional $30.0 million in common stock and up to an additional $30.0 million in notes to cover over-allotments. The two offerings are independent of each other.

The notes will be senior, unsecured obligations maturing on October 15, 2032, with interest payable semi-annually. Viking may redeem the notes in whole or in part on or after October 22, 2029, provided the last reported sale price of its common stock exceeds 130% of the conversion price for a specified period. Noteholders may convert their notes under certain conditions, with Viking settling conversions in cash, shares, or a combination of both at its election.

Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are acting as joint book-running managers for both offerings.

According to the company's statement, proceeds will be used for the continued clinical development and commercialization of its VK2735 program, the clinical development of its VK3019 program, and for general research and development, working capital, and corporate purposes. VK2735 is a dual GLP-1 and GIP receptor agonist currently in Phase 3 clinical studies for obesity. VK3019 is an amylin receptor agonist in development.

The offerings are being made under an effective shelf registration statement on file with the Securities and Exchange Commission.

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