aibioViking raises $575 million in stock and convertible notes after maintenance data
Tickers VKTX
Viking sold shares at $35 and 2% notes due 2032 that convert at about $50.75. Both deals were upsized from $200 million each, and full exercise of the underwriters' options lifted gross proceeds to $575 million.
Key facts
- Company
- Viking Therapeutics, Inc. (NASDAQ: VKTX)
- News type
- Financings
- Primary source
- Viking Therapeutics
Viking Therapeutics priced $500 million in stock and convertible notes on September 24, 2026, two days after reporting maintenance data for its obesity drug VK2735. The company sold 7,857,143 shares at $35.00 each and $225.0 million of 2.00% convertible senior notes due 2032.
Both deals were upsized. Viking had proposed $200 million of each on September 23. A September 28 announcement said the deals had closed, including full exercise of the underwriters' options to purchase more shares and notes. That brought the totals to 9,035,714 shares and $258.75 million of notes, for gross proceeds of about $575.0 million.
The details
The notes pay 2.00% a year, twice a year starting April 15, 2027, and mature on October 15, 2032. They convert at about $50.75 per share, a premium of about 45% over the $35.00 stock price. The initial conversion rate is 19.7044 shares per $1,000 of notes. Viking can choose to settle conversions in cash, shares or both.
Viking may redeem the notes for cash from October 22, 2029, but only if its shares trade above 130% of the conversion price for a set period. Holders can require Viking to repurchase the notes if the company undergoes a fundamental change, such as a takeover.
The underwriters had options for up to 1,178,571 more shares and $33.75 million more in notes. Viking estimated net proceeds of about $297.0 million from the stock and $250.8 million from the notes if those options were exercised in full. Morgan Stanley and J.P. Morgan were among the joint bookrunners on both deals.
Viking said the money will fund development and commercialization of VK2735, development of the amylin drug VK3019, and general corporate purposes.
Context
Viking had $502 million in cash and short-term investments at June 30, down from $706 million at the end of 2025. Its net loss in the first half of 2026 was $286.3 million, and R&D spending reached $115.8 million in the second quarter alone, almost double a year earlier.
The raise came right after the maintenance study readout on September 22. In that study, patients who switched from weekly injections to monthly dosing kept 85% of their weight loss over 12 weeks, against 61% on placebo. Weeks later Viking started its phase 3 SUNRISE program for an oral tablet form of VK2735.
What it means for investors
The raise roughly doubles Viking's June 30 cash, using the company's own estimate of net proceeds, at a time when it is paying for two large injectable phase 3 trials and starting two oral ones. That lowers the near-term financing risk ahead of VANQUISH results, for which Viking has not given a date.
The costs are dilution and debt. The share sale added 9,035,714 shares once the underwriters exercised their option in full. The notes add about $259 million of debt that converts into stock only if the share price rises above about $50.75. If it does not, Viking must repay the principal in 2032. The size of the raise suggests management expects heavy spending to continue.
What to watch
Viking expects results from part 2 of the maintenance study in 2027. The company has not given a date for VANQUISH phase 3 data.