Here's Why Shares of Passage Bio Dropped Today

Shares of Passage Bio (NASDAQ: PASG) were down by 13.7% at 2:20 p.m. EST after the biotech disclosed pricing of its secondary offering of 7 million shares at $22 per share. The gene therapy company will gross $154 million from the stock sale, although the capital raise could increase if the underwriters use their 30-day option to acquire an additional 1.05 million shares. Passage's share price closed at $22.82 Thursday, so a reset in valuation seems reasonable since investors in the secondary offering were only willing to pay $22 per share.