Shares of Ultragenyx Pharmaceutical (NASDAQ: RARE) plunged 11.89% in pre-market trading on Wednesday, following a disappointing third-quarter financial report and a significant royalty sale agreement. The biopharmaceutical company, which specializes in treatments for rare genetic diseases, faced a triple whammy of negative news that triggered a sharp sell-off.

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. Adding to investor concerns, the company announced the sale of 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 wary of the long-term implications of relinquishing a larger portion of future revenues from one of the company's key products.

In response to these developments, several analysts cut their target prices for Ultragenyx stock, further fueling the negative sentiment. TD Cowen lowered its target to $75 from $86, Jefferies reduced its target to $114 from $123, Truist Securities cut its target to $90 from $100, and RBC lowered its target to $72 from $77. Despite the setbacks, Ultragenyx maintained its 2025 revenue guidance of $640 million to $670 million, in line with analysts' expectations of $656.5 million.