Why Legend Biotech Shares Plummeted 17.6% Wednesday

Shares of Legend Biotech (NASDAQ: LEGN) dropped 17.6% on Wednesday, falling more than $4 from the day before, though all the action came early. The stock, which closed at $48.54 on Tuesday, opened at $44 a share on Wednesday and fell to $39.37 early in the day before rebounding a bit. The stock is up 46% year to date.

Investors reacted to the company's announcement on Tuesday that the clinical-stage biotech company intends to offer and sell $300 million of American depositary shares, each equaling two ordinary shares, in a public offering. This waters down the stock's value to current investors.

The company is slowly growing revenue, but because of rising costs, is still losing money.

Source Fool.com