AtheroGenics is issuing 6 million shares of common stock to raise funds for a Phase III clinical drug trial, research and development and other corporate needs, the company said Tuesday.

The stock traded at $6.50 per share at midday, down 68 cents or nearly 9.5 percent.

AtheroGenics (Nasdaq: AGIX) develops drugs for the treatment of chronic inflammatory diseases. Its AGI-1067 drug is the focus of the firm’s Phase III trial.

AGI-1067 is designed for the treatment of atherosclerosis in patients with coronary heart disease (CHD), the leading cause of death in the United States.