Shares of Autolus Therapeutics (NASDAQ: AUTL) were crashing 35.9% as of 10:34 a.m. ET on Friday. The steep decline came after the biopharmaceutical company announced the price of a public stock offering after the market closed on Thursday.

Autolus said that it plans to offer 75 million American depositary shares (ADS) at a price of $2 each. The company also is giving underwriters of the public offering a 30-day option to buy up to 11.25 million additional shares at the same price.

It's not unusual for biotech stocks such as Autolus to sink after announcing secondary stock offerings. Why? These offerings dilute the value of existing shares.

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Source Fool.com