Why Did CEL-SCI Plunge 43.24% After Public Offering?

On May 22, 2025, CEL-SCI's stock experienced a significant drop of 43.24% in pre-market trading, marking a substantial decline in its share price.

CEL-SCI Corporation, a clinical-stage cancer immunotherapy company, recently announced the pricing of an underwritten public offering. The offering involves 2 million shares of common stock, priced at $2.50 per share, with an additional option for underwriters to purchase up to 190,000 more shares. The proceeds from this offering are intended to support the development of Multikine, the company's investigational cancer immunotherapy product, as well as for general corporate purposes and working capital.

The public offering has raised concerns among investors, leading to a significant drop in the company's stock price. The proposed offering, announced on May 21, 2025, has put pressure on CEL-SCI's shares as investors react to the potential dilution of existing shares. The company's decision to issue additional common stock has raised questions about its financial strategy and future prospects.

CEL-SCI's flagship product, Multikine, aims to enhance the immune system's ability to target tumors and has received Orphan Drug designation from the FDA for specific cancer therapies. The company's focus on strengthening patients' immune response before major cancer treatments has been a key driver of its research and development efforts. However, the recent public offering and the subsequent drop in stock price have cast a shadow over the company's progress and investor confidence.