Genetic Therapy Inc. announced Friday that the underwriters of its follow-on publicstock offering of 2.2 million shares of common stock have exercised a portion of theiroverallotment option in connection with the offering. Certain stockholders sold 200,000shares and the company sold the remainder.

The underwriters, Smith Barney Shearson Inc. and Montgomery Securities, purchased anadditional 23,700 shares, far less than the standard 15 percent allowable (in this case,330,000 shares).

Genetic Therapy (NASDAQ:GTII) of Gaithersburg, Md., grossed $35.2 million in thefollow-on offering, its second in 1993, which closed Nov.18. As of Sept. 30, the genetherapy company had about $43.3 million in cash, short-term investments and marketablesecurities. It also reported a net loss of $2.2 million for the third quarter. GeneticTherapy's stock lost 13 cents a share on Friday, closing at $16.13.