Ultragenyx Pharmaceutical (NASDAQ: RARE) saw its stock price plummet 11.83% in pre-market trading on Wednesday, extending its losses from the previous day. The sharp decline comes in the wake of a significant royalty sale agreement and the release of disappointing third-quarter financial results.

The biopharmaceutical company, which focuses on developing treatments for rare genetic diseases, announced on Tuesday that it had sold an additional 25% of its future North American royalties on Crysvita® (burosumab) to OMERS, a Canadian pension plan, for $400 million. While Ultragenyx framed this transaction as a means to strengthen its balance sheet with non-dilutive capital, investors appeared concerned about the long-term implications of relinquishing a larger portion of future revenues from one of the company's key products.

Adding to investor woes, Ultragenyx reported a wider-than-expected Q3 net loss of $1.81 per diluted share, compared to a loss of $1.40 a year earlier and missing analysts' expectations of a $1.23 loss. Although revenue increased to $159.9 million from $139.5 million a year ago, it fell short of the $166.8 million forecast by analysts. In response to these developments, several analysts, including those from Truist Securities, Jefferies, TD Cowen, and RBC, cut their target prices for Ultragenyx stock, further contributing to the negative sentiment surrounding the company.