San Diegos Fate Therapeutics has raised $173 million in gross proceeds in a stock offering, the developer of immune cell therapies for cancer said Wednesday.

Fate sold 9.89 million shares at $17.50 each, including 1.29 million to underwriters under an option to buy more shares.

Net proceeds will be used to fund clinical trials and nonclinical studies, clinical manufacturing and other research and general corporate purposes.

Shares of Fate closed Wednesday at $17.61, up 62 cents for the day.

Fate is clinically testing a variety of immune cell therapies for cancer, using cells derived from donors and from artificially created stem cells called induced pluripotent stem cells. These forms of natural killer cells are being tested in solid tumors, ovarian and blood cancers.

On Sept. 3, Fate said the FDA had cleared an application to begin testing its most complicated immune cell therapy yet. Called FT596, it consists of natural killer cells genetically engineered to seek and destroy cells with certain tumor-associated proteins.

The genetic engineering technology has been used extensively in another type of immune cell called a T cell. These are equipped with what is known as Chimeric Antigen Receptors to create CAR T cells. These cells have produced a major advance in cancer therapy, rescuing patients close to death.

Natural killer cells seek abnormal cells with a more generalized mechanism. By equipping them with the CAR technology, Fate is trying to create more versatile cells with the properties of both.

Fate said it plans to test FT596 alone and in combination therapy for B-cell lymphoma and chronic lymphocytic leukemia.

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Fate Therapeutics raises $173 million in offering - The San Diego Union-Tribune