Celgene to Issue Stock

The shares will help meet demand after it joins the S&P 500.
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Cancer drug developer

Celgene

(CELG) - Get Report

is planning to issue up to 20 million shares as a result of Standard and Poor's decision to include the stock in the

S&P 500

.

The company says the offering will partially meet the anticipated demand by index funds who want to own the stock after its addition to the index.

Among other things, proceeds from the offering will be used for working capital, capital expenditures, possible future licenses and strategic investments.

Shares fell 4.6% to $50.46 Thursday.