BUZZ-Madrigal Pharma capitalizes on strong NASH data; Viking Therapeutics rides coattails9:55 AM ET, 06/07/2018 - Reuters
** Madrigal Pharmaceuticals and Viking Therapeutics both raise more equity than planned just days after Madrigal said its liver drug succeeded in a mid-stage study
** MDGL hikes its raise by 50 pct to $300 mln after offering 983,607 shares at $305, roughly 3 pct discount to stock's Weds close; existing shareholders also sell 363,625 shares
** Co targeted a $200 mln raise upon deal launch; its stock jumped to as high as $325.98 on Weds, triple the level prior to last week's drug data announcement
** Meanwhile, Viking offers 7.5 mln shares at $9 for gross raise of $67.5 mln
** Sources say Viking had marketed a $50 mln when deal launched after the close Weds
** Madrigal and Viking are developing treatments for non-alcoholic steatohepatitis (NASH), which is characterized by a build-up of fat in the liver, inflammation and damaged liver cells, and has no FDA-approved treatments currently
** On May 31, MDGL soared ~150 pct after releasing NASH results; VKTX doubled on the news
** The Street believes Madrigal's data sets co up for potential deal talks and/or strategic collaborations
** In early Thurs trade, MDGL shares off ~5 pct to $298.07, while VKTX shares jump ~6 pct to $9.60 |
