Kindred Biosciences' Stock Drops After Public Stock Offering

Shares of Kindred Biosciences Inc. dropped 3.2% in premarket trade Wednesday, after the biotechnology company focused on pet health announced a public offering of stock to raise $22.5 million. The company said it was selling 3 million shares at $7.50 a share, which was 4.5% below Tuesday's closing price of $7.88. The share amount represents 12.7% of the total shares outstanding. Kindred has granted the underwriters options to buy an additional 450,000 shares of common stock. The offering is expected to close on July 17. Kindred plans to use the proceeds from the offering to expand its infrastructure in anticipation of product approvals and launches, for the development of drug candidates and general corporate purposes. The stock has soared 85% year to date through Tuesday, while the S&P 500 has gained 8.3%.