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Shares of Nektar Therapeutics shed about 5 percent Wednesday after the biotech company announced a secondary offering of common stock worth more than $175 million.
The San-Francisco based company priced the issue of 13 million shares of its common stock at $13.50 a share, according to its press release. Additionally, underwriters have a 30-day option to purchase up to 1.95 million more shares at the same price.
The company said JP Morgan will act as lead book-running manager in the offering. It also said it will use the net proceeds from the offerings for general purposes such as research and development and working capital.
Nektar Therapeutics' stock is down more than 20 percent year to date.