ALVR - Why Shares of AlloVir Plummeted This Week
2023-06-23 13:56:53 ET
Shares of AlloVir (NASDAQ: ALVR) were down 39.8% for the week as of early Friday afternoon, after being down as much as 42.8%, according to data provided by S&P Global Market Intelligence . The clinical-stage biotech's stock is down more than 36% so far this year.
On Wednesday, the company said it was undertaking a public offering of shares worth $75 million to raise money. AlloVir is selling 20 million shares at $3.75 a share. Such sales are dilutive for current investors and often lead to lower prices for stocks.
The move came two weeks after AlloVir's stock rose on positive final data from a phase 2 trial of its lead therapy. As of the first quarter, it said it had only $202.6 million in cash, enough to fund operations into 2024 based on its burn rate, so the desire to raise more cash isn't a surprise.
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Why Shares of AlloVir Plummeted This Week