AtheroGenics, a pharmaceutical company seeking to discover and develop drugs for chronic inflammatory diseases, is offering 7.2 million shares of common stock at $6.25 per share to raise capital.

The company’s stock surged to $7.67, up $1.10 in midday trading.

Morgan Stanley & Co., Lehman Brothers, Lazard Freres & Co. and Adams, Harkness & Hill are managing the sale.