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Viridian Therapeutics, Inc. (NASDAQ:VRDN), a $1.17 billion market cap company specializing in medical laboratory services, has entered into a new sales agreement that could significantly impact its financial and operational future. According to InvestingPro data, the company’s stock has declined nearly 25% year-to-date, and current analysis suggests the stock is trading near its Fair Value. On Monday, the company announced an Open Market Sale Agreement with Jefferies LLC, which could see Viridian offering and selling up to $300 million worth of common stock.
The sales are to be conducted through an "at the market" offering, allowing the company to sell shares over time at prevailing market prices. Viridian has stated that the potential proceeds from these sales will go towards advancing the clinical development of its product candidates, including veligrolug, and preparing for the commercialization of any products that receive regulatory approval. Additional uses for the funds include working capital and general corporate purposes. InvestingPro analysis reveals that while the company maintains more cash than debt on its balance sheet, it’s currently burning through cash rapidly - one of several key insights available in the comprehensive Pro Research Report covering this stock.
This strategic move follows the termination of a previous agreement, also with Jefferies, which was dated September 9, 2022. The prior arrangement allowed for the sale of up to $175 million in common stock, of which Viridian had already sold approximately $115.2 million. With the termination of the previous agreement, no further sales will be conducted under that specific arrangement.
The new agreement with Jefferies, effective as of March 3, 2025, stipulates that the sales agent will make commercially reasonable efforts to sell the shares according to the company’s instructions, with a commission of up to 3.0% on the gross proceeds from the sales.
This development is reported based on a press release statement and is not an offer to sell or a solicitation of an offer to buy any shares. The offering of shares will be made under a shelf registration statement on Form S-3ASR filed with the SEC, which became effective upon filing. The legal opinion regarding the shares offered is provided by Ropes & Gray LLP, as included in the current report on Form 8-K.
Investors and observers of Viridian Therapeutics will be watching closely to see how the company utilizes this agreement to support its growth and product pipeline advancement. Analyst sentiment remains optimistic, with price targets ranging from $22 to $61 per share, though InvestingPro data indicates the company faces profitability challenges, with analysts not anticipating positive earnings this year. Subscribers to InvestingPro can access over 30 additional financial metrics and insights about Viridian’s financial health and growth prospects.
In other recent news, Viridian Therapeutics has been the focus of several analyst reports following positive results from its Phase 3 studies for the drug veligrotug, aimed at treating chronic Thyroid Eye Disease (TED). RBC Capital Markets increased its price target for the company to $47.00, citing the significant findings from the THRIVE-2 study, which showed a 56% absolute proptosis responder rate and notable improvements in diplopia. H.C. Wainwright maintained a Buy rating with a $34.00 price target, highlighting veligrotug’s superior performance in diplopia improvement compared to placebo and its favorable safety profile, particularly regarding hearing impairment rates. Oppenheimer also affirmed an Outperform rating with a $28.00 price target, pointing out the drug’s less burdensome treatment regimen compared to competitors.
Stifel analysts reiterated their Buy rating and a $41.00 price target, emphasizing the successful pharmacokinetic matching between veligrotug and Viridian’s next-generation subcutaneous drug, VRDN-003. This development reduces risk for the ongoing Phase 3 program, with data expected in early 2026. The analysts from Stifel and Oppenheimer express confidence in the potential market success of VRDN-003, given its differentiated administration and dosing advantages. Viridian’s progress with these treatments positions the company well in the TED market, with regulatory submissions anticipated in the coming years. These recent developments underscore the company’s strategic and commercial potential in the TED treatment landscape.
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