Austin, Texas-based XBiotech Inc. completed an underwritten public offering of common shares, raising about $40 million.

The company issued 4,848,485 shares at $8.25 apiece, and granted the underwriter a 30-day option to acquire up to 351,515 additional shares at the same issue price.

XBiotech will primarily use net proceeds to advance phase 2 clinical trials evaluating bermekimab to treat patients with hidradenitis suppurativa, a painful, long-term skin condition that causes infected bumps of skin filled with pus and scarring, and atopic dermatitis, or eczema — a chronic condition that makes skin thick, dry, red and itchy.

The funds will also be used for general corporate and working capital purposes.

Piper Jaffray acted as sole underwriter for the offering.