Shares of Axsome Therapeutics (NASDAQ: AXSM) were down more than 10% as of 3:45 p.m. ET Wednesday after the company announced it is offering 3 million shares at $75 each in a stock sale worth $225 million. The stock is down more than 3% this year.

The biopharmaceutical company focuses on therapies to treat central nervous system disorders. Investors rarely like stock sales because they dilute the stock's price. In this case, the company is offering shares at a 10% discount to what the stock's closing price was on Tuesday.

The move shouldn't be a surprise. The company needs to fund development of its late-stage therapies as well as help the commercialization of its products, antidepressant therapy Auvelity and sleep disorder drug Sunosi. The company reported revenue of $94.6 million in the first quarter after having no revenue in the same period a year ago. It lost $11.2 million compared to a loss of $39.6 million in the first quarter of 2022.

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Source Fool.com