Viridian Therapeutics launches $150 million public offering

WALTHAM, Mass. - Viridian Therapeutics, Inc. (NASDAQ: VRDN), a biotechnology firm, has initiated a public offering of $150 million of its common stock and Series B non-voting convertible preferred stock, the company announced. Viridian is also offering underwriters a 30-day option to buy an additional $22.5 million of common stock.

The proceeds from the offering, which will be combined with existing cash and investments, are earmarked for clinical development programs, working capital, and general corporate purposes. The Series B preferred stock will be convertible into common stock at the holder's discretion, adhering to ownership limits.

The offering is managed by Jefferies, Goldman Sachs & Co. LLC, Stifel, and RBC Capital Markets as joint book-runners, with Wedbush PacGrow as co-manager. Following the effective registration statement filed with the SEC on September 9, 2022, the offering will be made via a prospectus. The securities are yet to be approved under state securities laws, and the sale is contingent upon registration or qualification under these laws.

Viridian focuses on developing medicines for serious and rare diseases, with multiple clinical candidates for thyroid eye disease (TED) and a portfolio of neonatal Fc receptor inhibitors for autoimmune diseases.

The company's forward-looking statements, including the use of proceeds and the potential of its TED therapy and FcRn inhibitors, are subject to market conditions and other risks identified in SEC filings. These statements are current beliefs and expectations but are not guarantees of future performance.

This article is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities.

In other recent news, Viridian Therapeutics has made significant strides in its clinical trials for thyroid eye disease (TED) treatments. Encouraging results from Viridian's Phase 3 THRIVE study led Stifel to increase the price target for Viridian Therapeutics to $40. This positive topline data has increased the probability of success for VRDN-001/003 to 80% from the prior estimate of 66%. BTIG also raised its price target for Viridian Therapeutics to $56.00, maintaining a Buy rating based on the promising efficacy and safety data from the THRIVE study.

Viridian reported positive results from its phase 3 THRIVE trial for veligrotug, meeting all primary and secondary endpoints. The company has completed enrollment for its Phase 3 trial of VRDN-001, with top-line results expected in September 2024. Viridian also initiated two global phase 3 trials, REVEAL-1 and REVEAL-2, for VRDN-003, a subcutaneous form of the antibody.

On the financial front, Viridian held $571.4 million in cash and equivalents as of June 30, 2024. Analyst firms, including Goldman Sachs, RBC Capital, and Wolfe Research, project potential revenue from VRDN-001 to reach approximately $690 million worldwide by 2027. These are recent developments in the company's ongoing efforts to establish a strong presence in the TED market with innovative treatment options.

InvestingPro Insights

Viridian Therapeutics (NASDAQ: VRDN) recently announced a significant public offering, aiming to bolster its financial resources for ongoing clinical developments. As investors consider participating in this offering, several key metrics and InvestingPro Tips can provide a clearer picture of the company's financial health.

Currently, Viridian Therapeutics holds a market capitalization of approximately $1.2 billion, reflecting the company's valuation in the eyes of the market. Despite the ambitious growth plans, analysts have expressed caution, with seven analysts revising their earnings expectations downwards for the upcoming period. This aligns with Viridian's significant revenue decline over the last twelve months, which stands at -80.41%, and a staggering gross profit margin of -57041.32%, indicating the company's challenges in converting sales into profit.

One of the key InvestingPro Tips highlights that Viridian is not expected to be profitable this year, which is further underscored by its negative P/E ratio of -4.4, adjusted to -3.98 over the last twelve months as of Q2 2024. The company's struggle for profitability is also reflected in its operating income margin, which is at -87078.12% for the same period. However, it's noteworthy that Viridian's liquid assets exceed its short-term obligations, suggesting a degree of financial flexibility in the near term.

Investors should note that Viridian is trading at a high revenue valuation multiple and does not pay a dividend, which could impact the investment's attractiveness for those seeking regular income. On a more positive note, the company has experienced a strong return over the last three months, with a 16.12% increase, although the six-month and year-to-date returns have been negative.

For those interested in a deeper analysis, InvestingPro offers additional tips on Viridian Therapeutics, which can be accessed by visiting the dedicated page for VRDN at https://www.investing.com/pro/VRDN. With these insights, investors can better gauge the potential risks and rewards associated with Viridian's public offering and its overall financial trajectory.

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