Why Theravance Biopharma Shares Are Sinking Today
Shares of Theravance Biopharma (NASDAQ: TBPH) were sinking 10.7% lower as of 11:04 a.m. EST on Wednesday. This decline came after the drugmaker announced the pricing of a public stock offering after the market closed on Tuesday. Theravance plans to sell 5.5 million new shares at a price of $27 per share.
Public stock offerings come with the territory when investing in biotech stocks. The downside to these transactions is that they dilute the value of existing shares. That's the main reason why Theravance's share price fell today.
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Source Fool.com
