Why Did Generation Bio Plunge 17.47%? Reverse Split Announced

On July 18, 2025, Generation Bio's stock experienced a significant drop of 17.47% in pre-market trading, marking a notable decline in its share price.

The primary driver behind this decline is the company's announcement of a 1-for-10 reverse stock split. This move, effective at 5:00 p.m. on the same day, aims to increase the stock's price per share by reducing the number of outstanding shares. No fractional shares will be issued; instead, stockholders who would otherwise receive fractional shares will be compensated with cash payments.

This strategic decision by Generation Bio is likely aimed at enhancing the stock's appeal to institutional investors and potentially boosting its market perception. However, such actions often lead to short-term volatility as investors react to the changes in share structure.