Human Genome Sciences Inc. expanded the size of a planned stock offering Thursday, and said it expects to raise $397 million from the sale.
The company priced a sale of 15.5 million shares of stock at $26.75 per share, and said the underwriters of its offering will have the option to buy another 2.3 million shares if demand exceeds initial supply. Human Genome Sciences on Monday had said it would sell up to 14.4 million shares, including potential over-allotments.
The company plans to use proceeds from the sale to fund development of its lupus drug candidate Benlysta, including researching potential other uses for the product, among other purposes.
In afternoon trading, the stock rose $1.15, or 4.2 percent, to $28.61.
Human Genome Sciences had 165 million shares on the market at the end of the third quarter. If it sells all 17.8 million shares by the time the offering closes on Tuesday, that will increase its share count by 10.8 percent.