Shares of GH Research PLC (GHRS) plummeted 22.4% in the pre-market session on Tuesday, as the Ireland-based biotech company commenced a $150 million stock offering to fund the development of its treatments for depression.
The sharp sell-off comes just one day after GHRS shares skyrocketed 70% to close at $17.99 on Monday, after the company announced that its depression therapy GH001 met the main goals of a mid-stage clinical study.
According to GH Research's SEC filing, the company plans to use the net proceeds from the stock sale to invest in research, clinical trials, and technical development of its current and additional product candidates targeting depression and other mental health disorders.
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