Here's Why Viking Therapeutics Shares Slumped Today
It's been an eventful week for the weight-loss drug company, which continues to impress with its clinical data, and today's move isn't much to worry about.
Overview
Viking Therapeutics (NASDAQ: VKTX) stock declined by 14.5% in early morning trading today, a week after the company reported top-line results from a maintenance study of its key weight-loss drug, VK2735. However, don't panic. Today's move is not directly related to the results released a couple of days ago.
In fact, the results were positive enough to prompt management to announce an offering of common stock and convertible senior notes to capitalize on the share price surge and raise capital to fund its ongoing development pipeline, including VK2735 in Phase 3 trials.
Details
Management announced a $200 million offering of common stock and $200 million in convertible senior notes due in 2023 on Wednesday. These offerings were clearly well received because today management announced it had upsized the offering to 7,857,143 shares of common stock at $35 (equivalent to about $275 million) and $225 million in convertible senior notes.
Source
Originally published at www.fool.com.