AtheroGenics Inc. plans a public offering of 6 million shares of common stock, a move that could garner about $43.1 million based on Friday's closing price of its shares. The sum could grow to about $49.5 million if the underwriters exercise an option to purchase another 900,000 shares to cover overallotments.

AtheroGenics' stock (NASDAQ:AGIX) closed at $7.18 in advance of the holiday weekend, but fell 59 cents Tuesday to close at $6.54. The Atlanta-based company reported in its most recent financial statement a $6.9 million net loss for the three months ended Sept. 30. It reported $41.2 million in cash, cash equivalents and marketable securities, as well as about 28 million shares outstanding.

AtheroGenics said it would use a portion of the net proceeds for the Phase III development program of AGI-1067.

Earlier this month AtheroGenics began a pivotal trial of the small molecule, its oral anti-inflammatory drug candidate to treat atherosclerosis in coronary heart disease patients. The 4,000-patient trial will be conducted in 160 U.S., Canadian and South African cardiac centers to evaluate AGI-1067's impact on a variety of outcomes, such as death due to coronary disease, myocardial infarction, stroke, coronary revascularization and unstable angina in coronary heart disease patients. (See BioWorld Today, Jan. 15, 2003.)

AtheroGenics also said it would direct another percentage of the funds to other research and development programs and for general corporate purposes.

The offering is being made as part of a shelf statement filed Nov. 13. The prospectus called for the firm to offer and sell up to $75 million of common stock.

Managers Morgan Stanley & Co. Inc. and Lehman Brothers Inc., both of New York, are co-leading the offering. Lazard Freres & Co. LLC, of New York, and Adams, Harkness & Hill Inc., of Boston, also are serving as managing underwriters.