SOUTH SAN FRANCISCO, Calif. (AP) -- KaloBios Pharmaceuticals said Monday that it plans to sell $30 million in stock to fund drug development and cover other expenses.
The company said it will use the proceeds of the offering to fund development and clinical testing of its drugs, which include treatments for severe asthma and a preventive treatment for pneumonia. KaloBios didn't disclose a price for the offering.
The underwriters of the offering will have the option to buy another $4.5 million in stock. The totals do not include discounts or underwriting expenses.
Shares of KaloBios Pharmaceuticals Inc. rose 14 cents, or 2.7 percent, to $5.28 in morning trading Monday. The company went public in February with an IPO that priced at $8 per share, and the stock has lost 34 percent of its value since then.