SOUTH SAN FRANCISCO, Calif. (AP) — Drug developer Theravance Inc. said Wednesday it will sell 7.5 million shares of stock to raise money for general corporate purposes.
Theravance said the underwriters of the offering will have the option to buy another 1.1 million shares. The joint book-running managers of the offering are Morgan Stanley, Credit Suisse Securities, and Leerink Swann.
Theravance said the proceeds from the sale may be used to fund human trials and preclinical development of its drug candidates, drug research, manufacturing, capital spending, working capital, acquisitions of technology or drug candidates, funding of obligations under partnership agreements, or repaying debt, among other activities.
The company is seeking approval of its drug Vibativ as a treatment for complicated skin infections, and it may need to run new clinical trials of the drug. Regulators approved Vibativ in September as a treatment for hospital-acquired pneumonia.
Theravance had 54.8 million shares on the market as of Feb. 16. If all 8.6 million shares are sold, the company's share count will rise 15.7 percent, to about 63.5 million.
In aftermarket trading, Theravance shares rose 8 cents to $12.57.