VKTX Stock Logs 3-Day Losing Streak As $548M Raise Closes — Retail Calls Dip An ‘Easy Buy’ Amid Buyout Talks

• Viking closed stock and convertible-note offerings that raised about $575 million in gross proceeds and nearly $548 million after fees and expenses.
• Viking sold about 9 million shares at $35 each and issued $258.75 million in 2% convertible notes due 2032.
• The proceeds are intended mainly to advance Viking’s VK2735 and VK3019 obesity programs.

Shares of Viking Therapeutics (VKTX) extended their losing streak to three sessions on Monday as the company confirmed that it completed stock and convertible-note offerings that raised nearly $548 million in net proceeds.

VKTX stock tumbled 7% to $33.03 on Monday, though it remains up 0.8% so far this month.

Viking Closes Upsized $575M Financing

In a fresh regulatory filing on Monday, Viking said the offerings closed on Friday after underwriters exercised their options to buy additional stock and notes in full. The company sold 9 million shares at $35 each and issued $258.75 million in 2% convertible senior notes due 2032. The combined gross proceeds were about $575 million, before underwriting fees and expenses.

Viking had initially proposed selling $200 million of stock and $200 million of notes last week. It later priced larger offerings, with the possibility of raising more if the underwriters exercised their options. 

The notes have an initial conversion price of about $50.75 per share. Viking may settle conversions in cash, shares or a combination of both. Viking said it intends to use the proceeds for the continued development and potential commercialization of VK2735, development of its VK3019 program, and other research, working capital and corporate purposes.

Analysts See Promise In VK2735 Maintenance Results

The fundraising came after a study last week that tested whether patients could maintain weight loss on less frequent VK2735 injections. After an initial period of weekly treatment, participants retained up to 97% of their earlier weight loss with every-other-week dosing and up to 90% with monthly dosing over the 12-week maintenance phase.

An exploratory group that remained on weekly treatment reached a mean weight loss of 21.7% from baseline by week 33, with no plateau observed. Viking said gastrointestinal side effects during the maintenance phase were similar to those seen with placebo.

The readout drew optimistic analyst responses before the financing closed. Truist called it a “best-case scenario,” highlighting the depth of weight loss, retention and tolerability. The firm saw potential for both every-other-week and monthly maintenance schedules, although Viking had yet to determine the doses and frequency it would use in later-stage extensions.

Oppenheimer called the preservation of weight loss on less frequent dosing “impressive” and said injectable and oral formulations could give VK2735 multiple treatment pathways. Morgan Stanley described the data as “very positive,” pointing to efficacy in both weight loss and maintenance, while H.C. Wainwright called the results “highly encouraging.”

Oppenheimer subsequently raised its price target to $120, and Truist increased its target to $87. H.C. Wainwright’s target stood at $102 and Morgan Stanley’s at $95. From current levels, the targets imply upsides in the range of 163% to 263%.

How Do Retail Traders Feel About VKTX?

On Stocktwits, retail sentiment for VKTX has been ‘extremely bullish’ over the past week amid ‘extremely high’ message volume.

One user said, “Stepped in and grabbed some $VKTX down another 7+% today. If the market wants to hand over shares of a fully funded, largely de-risked asset because of typical post-raise noise, I’m not going to argue. Easy buy down here, IMO. Giddy up.”

Another user said, “Underwriters exercised the additional (15 %) option for shares and note, so got additional $75m. Total 575m additional- so all good for cash runway into late 2028, to commercialization of SQ and results of Phase 3 Oral (and may be FDA submission too) if we have to GIA (I am pretty sure BO will happen at the most my mid next Year). Now it is execution time!”

VKTX stock has risen 29% year-to-date.

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