Kite Pharma Launches Public Stock Sale Following Recent Price Surge

By Tomi Kilgore Markets MarketWatch Pulse

Shares of Kite Pharma Inc. slumped 5.2 in premarket trade Thursday, after the developer of cancer treatments launched a public offering of 4.75 million common shares. The move comes after the stock rocketed 51% over the past three days, amid positive results from a study of its treatment for aggressive non-Hodgkin's lymphoma. Kite said all the shares will be sold by the company. With about 50.2 million shares outstanding through Wednesday, according to FactSet, the offering would increase that total by 9.5%. The underwriters of the offering have been granted options to buy up to an additional 712,500 shares. The stock has rallied 48% over the past 12 months, while the S&P 500 has gained 21%.

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