Taysha Gene Therapies, Inc. (TSHA) saw its stock price plummet by 5.83% in pre-market trading on Tuesday, following the release of its third-quarter financial results and the filing of a mixed shelf offering. The gene therapy company reported wider losses and increased expenses, raising concerns among investors about its financial health and future funding needs.

According to the company's Q3 report, Taysha Gene Therapies posted a net loss of $32.733 million, or $0.09 per share, compared to a loss of $0.10 per share in the same period last year. While the per-share loss narrowed slightly, the overall net loss widened. The company's operating expenses increased to $34.024 million, with research and development costs rising significantly to $25.7 million from $14.9 million in the previous year. This surge in R&D expenses reflects the company's ongoing investments in its gene therapy pipeline, particularly its TSHA-102 program for Rett syndrome.

Adding to investor concerns, Taysha Gene Therapies filed for a mixed shelf offering and amended its sales agreement, increasing the offering amount to $212 million. This move suggests that the company is preparing to raise additional capital, which could potentially dilute existing shareholders. The termination of its previous sales agreement with Leerink Partners and the filing of a new shelf registration have further fueled speculation about the company's financial strategy. Despite reporting $297.3 million in cash and cash equivalents as of September 30, the market's negative reaction indicates apprehension about the company's cash burn rate and the potential need for future financing rounds.