Shares of Ultragenyx Pharmaceutical (RARE) plummeted 9.94% in Tuesday's trading session following the release of the company's first-quarter 2025 financial results. The significant drop came despite the biopharmaceutical firm reporting a narrower-than-expected loss per share.

Ultragenyx reported a Q1 earnings per share (EPS) loss of $1.57, slightly better than the IBES estimate of -$1.61. However, investors seemed to focus on the company's substantial net loss of $151 million for the quarter. The pharmaceutical company also disclosed operating expenses of $282 million, highlighting the high costs associated with its drug development and commercialization efforts.

Despite the better-than-expected EPS, the market's negative reaction suggests investors may be concerned about Ultragenyx's path to profitability. The company's reaffirmation of its 2025 financial guidance did little to assuage these worries. As Ultragenyx continues to invest heavily in its pipeline of rare disease treatments, the balance between advancing potentially groundbreaking therapies and achieving financial sustainability remains a key focus for investors.