Summit Therapeutics PLC (SMMT) shares dropped 5.54% in Thursday's trading session, coming under pressure after the company's latest quarterly report revealed a significant widening of its non-GAAP net loss and detailed plans for a substantial stock offering.

The decline was triggered by the company's second-quarter financial results. While the GAAP net loss narrowed to $215.7 million, this was largely due to a sharp decline in stock-based compensation expenses from the prior year. More telling for investors was the non-GAAP net loss, which widened to $147.0 million, or $0.19 per share, from $86.9 million a year ago. This increase was driven by a surge in operating expenses related to the expansion of clinical trials for its lead oncology candidate, ivonescimab.

Adding to the selling pressure, Summit disclosed in an SEC filing that it plans to offer and sell up to $380 million in common stock through a sales agent, which could dilute existing shareholders. The company also acknowledged in its quarterly filing that its current cash and investments are not sufficient to fund its operations long-term, signaling the need for additional capital.