BridgeBio Pharma Inc. shares declined on Monday after private equity firm KKR & Co. initiated a secondary offering of the biotechnology company's stock.
The offering, which includes 3.5 million shares, was priced at $50 per share, according to a regulatory filing. The sale follows KKR's earlier investment in BridgeBio, which has been developing treatments for genetic diseases. The company's shares fell 4.2% to $48.50 in afternoon trading.
KKR, a major investor in BridgeBio, did not disclose its motivation for the sale. Analysts noted that secondary offerings often signal existing shareholders seeking to monetize positions, which can weigh on stock prices in the short term. BridgeBio's market capitalization stood at approximately $4.1 billion ahead of the offering.
The company, based in Palo Alto, California, has faced volatility amid clinical trial updates for its lead drug candidate. BridgeBio has not provided an updated outlook for the offering or its financial impact. Investors will monitor demand for the shares as the offering proceeds.
BridgeBio did not respond to requests for comment on the secondary offering or its strategic plans.
