Aveo Pharma says it will sell $50M in stock

CAMBRIDGE, Mass. (AP) -- Aveo Pharmaceuticals Inc. said Thursday it plans to sell about $50 million in stock.

The company said it will sell 6.7 million shares of stock for $7.50 a share. It expects to raise about $50 million before discounts and commissions. The offering is priced at a discount of 7.6 percent based on Wednesday's closing price.

Aveo said the underwriters of the offering will have the option to buy 1 million additional shares over the next month to cover any over allotments. The offering is expected to close on Wednesday.

Aveo had 43.7 million shares on the market as of Nov. 1. Shares of Aveo fell 42 cents, or 5.2 percent, to $7.70 in midday trading.

Aveo helped develop an experimental cancer pill called Tivopath. The Food and Drug Administration is reviewing Tivopath as a treatment for advanced kidney cancer, and the agency is expected to finish its review by July 28. Aveo and its partner Astellas Pharma are also studying the drug as a treatment for other solid tumors, including cancers of the breast and colon.