BUZZ - Viking Therapeutics drops as it plans stock and convertible bond offering

September 23 - ** Viking Therapeutics (VKTX.O) shares fell 8% in after-hours trading to $38.32, as the company seeks to raise funds

** VKTX (link) announced a public offering of $200 million in stock and $200 million in convertible bonds, with the bonds maturing on October 15, 2032

** On Tuesday, VKTX shares surged about 36% to $40.85 after its obesity treatment drug VK2735 showed sustained weight loss effects for patients in a study compared to the placebo group (link)

** The company plans to use the net proceeds from this offering for the clinical development, advancement and commercialization of the VK2735 program, as well as for the advancement of the VK3019 program and other uses

** Morgan Stanley and JPMorgan are joint bookrunners for both offerings

** On Wednesday, VKTX shares gained another 2%, closing at $41.65

** The company, headquartered in San Diego, California, has a market capitalization of approximately $4.9 billion based on around 116.65 million shares outstanding

** According to London Stock Exchange Group (LSEG) data, the average rating from 20 analysts is “buy”, with a median target price of $100

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