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Horizon Pharma plans offering of stock, warrants

DEERFIELD, Ill. (AP) -- Horizon Pharma Inc. said Wednesday it plans to sell stock and options and use proceeds for general corporate purposes, including commercializing its arthritis treatments Duexis and Rayos.

The drugmaker did not disclose how many shares it plans to sell or how much money it aims to raise. Assuming it sells at $50 million worth of units in the offering, it expects that the net proceeds from the offering and existing cash and cash equivalents will be sufficient to fund operations for at least the next year.

Horizon said it will sell units, each of which will consist of one share and a warrant to buy 0.5 shares. The underwriters of the offering will have an option to buy additional units to cover any over-allotments.

Cowen and Co., JMP Securities and Stifel Nicolaus Weisel are the joint book-running managers for the offering.

Shares of Horizon Pharma dropped 34 cents, or 7.4 percent, to $4.24 in after-hours trading after dipping 4 cents to $4.58 during regular trading. Over the past year, shares have traded between $3.05 and $8.99.