Shares of Replimune Group Inc. (REPL) plunged 5.37% in pre-market trading on Friday, as investors reacted to the company's latest financial moves and a series of insider stock disposals. The clinical-stage biotechnology company, which focuses on oncolytic immuno-gene therapies for cancer treatment, faces potential dilution concerns amid its efforts to raise capital.

According to SEC filings, Replimune has filed for a mixed shelf offering of up to $250 million, including a sales agreement prospectus covering an offering of up to $100 million in common stock that may be issued from time to time. Additionally, the company filed for the offer and resale of 25.1 million shares of common stock by selling stockholders, further pressuring the stock price.

Adding to investor unease, multiple company insiders reported disposals of common shares. These included CEO Sushil Patel, CFO Emily Luisa Hill, Chief Medical Officer Konstantinos Xynos, and other key executives. While insider sales can occur for various reasons, the timing coinciding with the shelf offering has likely contributed to the negative sentiment surrounding the stock. Despite the sharp decline, J.P. Morgan analyst Anupam Rama maintained a Buy rating on Replimune Group, indicating potential long-term confidence in the company's prospects despite short-term headwinds.