Keryx announces $55M public offering

Keryx Biopharma to offer $55 million in public stock offering

Associated Press

NEW YORK (AP) -- Keryx Biopharmaceuticals Inc. said Tuesday that it will offer $55 million worth of its common stock in a public offering.

The drugmaker is studying an experimental drug, Zerenex, as a treatment for late-stage kidney disease. The company said it would use proceeds of the offering to fund prelaunch activities for the drug.

Keryx has no products on the market, and Zerenex is its most advanced drug. The company plans to submit an application for approval of the drug to both the U.S. Food and Drug Administration and European regulators in this year's second quarter.

The company has granted underwriters a 30-day option to purchase additional shares of common stock.

JP Morgan is acting as the book-running manager for the offering.

Company shares rose $2.30, or 38 percent, to close at $8.36 in regular trading. In afterhours trading shares fell 21 cents, or 2.5 percent to $8.15.

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