Shares of Santa Monica cancer drug developer Kite Pharma Inc. were up Tuesday after the company announced it plans to sell up to $250 million worth of common stock.

The underwriters will have a 30-day option to buy up to an additional $37.5 million worth of shares of common stock at the public offering price.

Kite plans to use the proceeds for its lead product candidate, KTE-C19, according to a SEC filing. The KTE-C19 drug, if approved, will be used to treat patients with aggressive non-Hodgkin lymphoma.

The company also plans to use the proceeds to fund research, begin initiating clinical trials in Europe and fund working capital.

Kite shares closed the day up 5 percent, to $74.85. Kite has a market capitalization of about $3.3 billion.