Viking Therapeutics IPO: BioPharm Gets A Neutral Rating
Francis Gaskins | Sep 18, 2014 12:59AM ET
Viking Therapeutics (VKTX): New IPO going public Thursday, September 18, 2014.
Overview
VKTX is a clinical-stage biopharmaceutical company focused on the development of novel, first-in-class or best-in-class therapies for metabolic and endocrine disorders. Clinical trials have shown that VK0612 is safe, well-tolerated and leads to significant glucose-lowering effects in patients with type 2 diabetes. The P/E ratio is -3.6, which indicates a very high cash burn rate relative to the market cap.
Based in San Diego, CA, Viking Therapeutics (VKTX) scheduled a $55 million IPO on the NASDAQ with a market capitalization of $167 million at a price range midpoint of $11 for Thursday September 18, 2014.
- SEC Documents Manager, Co-Managers: Oppenheimer & Co., Roth Capital
- Joint Managers: Craig-Hallum Capital Group, MLV & Co, Summer Street Research Partners
Conclusion
The rating is neutral. Clinical trials have shown that VK0612 is safe, well-tolerated and leads to significant glucose-lowering effects in patients with type 2 diabetes. VKTX is an intellectual property carve-out/spin-off of Ligand Pharmaceuticals (NASDAQ:LGND), $1 billion market cap, which owns 25% pre-IPO. Ligand, the 'parent' indicated an interest in purchasing $5 million on the IPO. To put the conclusions and observations in context, the following is reorganized, edited and summarized from the full S-1 referenced above.
Valuation
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