Achillion Pharmaceuticals Inc. said Monday that plans to sell 9 million shares of stock in a public offering and expects net proceeds of about $52.1 million.
The New Haven, Conn., drug developer said the expectation for proceeds depends on an assumed price of $6.19 per share, which is what the stock closed at Friday.
The company will use proceeds to fund clinical testing and drug development.
Achillion will give underwriters a 30-day option to buy 1.3 million more shares to cover any excess demand. It could see net proceeds of $59.9 million if that option is exercised in full.
BofA Merrill Lynch and Leerink Swann LLC are acting as joint book-running managers for the offering.
Company shares fell 27 cents, or 4.4 percent, to $5.82 in after-hours trading Monday.