Why Epizyme Stock Plummeted by 44% Today

One of the steepest decliners in the biotech sector Thursday was Epizyme (NASDAQ: EPZM). The cancer-focused biotech saw its shares plummet 44% in value that day, on news of a dilutive secondary stock issue.

Epizyme announced that it is floating nearly 56.7 million shares of its stock, which will be sold in a public offering at $1.50 per share before underwriting discounts. The underwriting syndicate of the offering, which is led by Jefferies and Barclays, has been granted a 30-day option to collectively buy up to 8.5 million additional shares at the same price.

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Source Fool.com