Local drugmaker Viking Therapeutics has inked two agreements with a Chicago-based investor that will give the La Jolla company access to $16.25 million in funds.
Under one deal, Viking will have the option to sell $15 million of its stock to Lincoln Park Capital Fund over a 30 month period, giving the company cash to work with practically on-demand. Proceeds would be used to progress the company’s therapeutic research, Viking said in a statement.
The other purchase agreement is more immediate, in which Lincoln Park Capital Fund will purchase $1.25 million of Viking’s stock at $1.78 per share (14 percent higher than the company’s stock price at close of market Sept. 7).
“This agreement provides Viking with potential future access to capital at attractive terms,” Brian Lian, CEO of Viking, said in a statement.
The company’s lead product (still undergoing research) is called VK5211, a drug the company hopes will produce the therapeutic benefits of testosterone without the unwanted side effects. The drug is currently being tested in humans in a mid-stage (Phase 2) clinical trial. The medicine is meant to treat patients recovering from hip fractures. Viking expects data from that study in the fourth quarter of this year.
Viking’s stock (Nasdaq: VKTX) is up 5.6 percent on the news, trading for $1.90 per share by midday Friday.