Shares of CG Oncology Inc. (CGON) plummeted 5.37% in pre-market trading on Monday, as investors reacted to the company's recent mixed shelf registration filing and disappointing fourth-quarter results.

The late-stage clinical biopharmaceutical company, focused on developing bladder cancer treatments, filed a registration statement on Friday for the potential sale of an unspecified amount of securities. This move, which could lead to the issuance of additional shares and potential dilution of existing stockholders' stakes, appears to have spooked investors.

Adding to the downward pressure, CG Oncology had previously reported a wider-than-expected loss for the fourth quarter of 2024. The company posted an adjusted loss per share of $0.48, surpassing the Zacks Consensus Estimate of a $0.41 loss per share. This financial underperformance, coupled with the mixed shelf filing, likely contributed to the significant sell-off in pre-market trading.

Despite the negative market reaction, CG Oncology continues to progress its clinical programs. The company recently announced its participation in the upcoming 120th American Urological Association Annual Meeting, where it plans to present key updates on its lead candidate, cretostimogene grenadenorepvec, for the treatment of non-muscle invasive bladder cancer. However, it remains to be seen whether these potential catalysts can offset investor concerns about the company's financial position and potential future dilution.