Shares of biopharmaceutical company EyePoint Pharmaceuticals (EYPT) plummeted over 8% on Monday, October 29th, as the impact of a $100 million public offering of its common stock overshadowed positive interim data from a mid-stage trial for its lead drug candidate, Duravyu.

The $100 million stock offering, underwritten by J.P. Morgan, Citigroup, and Guggenheim Securities, is expected to dilute existing shareholders, weighing heavily on the stock price. EyePoint plans to use the net proceeds to fund the continued development of Duravyu and support its earlier-stage pipeline initiatives.

While EyePoint reported that Duravyu showed an improvement in visual acuity compared to the control group in the mid-stage trial for diabetic macular edema, investors appear to be taking a cautious stance until the full topline results are released in the first quarter of 2025. The positive trial data was overshadowed by the immediate dilutive impact of the $100 million stock offering, leading to the sharp plunge in EyePoint's shares.