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Progenics Pharma prices stock offer at $2 apiece

TARRYTOWN, N.Y. (AP) -- Shares of Progenics Pharmaceuticals Inc. rallied Thursday, after the company priced its underwritten public offering of 11 million shares of common stock at $2 per share.

The offering price represents a 5 percent discount to Progenics' Wednesday closing stock price of $2.11.

The Tarrytown, N.Y.-based company said that the offering, which will result in proceeds of about $22 million before underwriting discounts and commissions and other offering expenses, will close on or about Dec. 4.

Progenics also granted Jefferies & Co., the offering's underwriter, a 30-day option to buy 1.7 million additional common shares.

Progenics is selling all of the shares in the offering and said it plans to use the proceeds for research and development and general corporate purposes.

Progenics shares rose 38 cents, or 18 percent, to $2.49 in midday trading. The stock has traded between $1.41 and $11.34 over the past year.