Why Did OTLK Stock Crash In Pre-Market Today?

• Outlook plans to use the funds, alongside its existing cash, to support the U.S. commercial launch of its eye drug Lytenava.
• Lytenava received U.S. Food and Drug Administration approval for wet age-related macular degeneration last month.
• Wall Street is expecting a third-quarter loss of $0.07 per share on Friday, narrower than last year’s $0.44 per share loss, according to Fiscal.ai.

Shares of Outlook Therapeutics (OTLK) tanked nearly 24% in pre-market trading on Thursday, after the biotech firm announced a discounted share offering to fund the commercial launch of its recently approved eye drug in the U.S.

OTLK stock is tracking its third successive decline.

Offering At A 10% Discount

Outlook Therapeutics is looking to sell about 55.6 million common shares, each accompanied by a warrant to purchase another share, at a combined price of $0.99. This represents a 10% discount over the stock’s closing price on Wednesday.

The warrants carry an exercise price of $1.10 and expire after five years. Underwriters also have a 30-day option to purchase up to 8.3 million additional shares and an equal number of warrants. The offering is expected to close on Aug. 14, 2026.

Outlook expects gross proceeds of roughly $55 million, which it plans to use, alongside its existing cash, to support the U.S. commercial launch of Lytenava as well as for general corporate purposes.

Lytenava Set For U.S. Launch 

Last month, the U.S. Food and Drug Administration (FDA) approved Lytenava for wet age-related macular degeneration. Outlook describes it as the only FDA-approved Bevacizumab formulation developed specifically for use in the eye.

The approval marked a turnaround after the FDA rejected Outlook’s application in December 2025 and requested additional evidence. Following an appeal, the agency’s Office of New Drugs concluded in May that no further clinical trials were needed.

Lytenava is already approved in the EU and U.K., and the company expects a U.S. launch before year-end.

OTLK Q3 Earnings Due Friday

Meanwhile, the company reports third-quarter results on Friday, with Wall Street expecting a loss of $0.07 per share, narrower than last year’s $0.44 per share loss, according to Fiscal.ai. The stock has a 12-month price target of $5.40, according to Koyfin data, while three of the four analysts covering the stock have a ‘Buy’ rating and one ‘hold’ rating.

Retail Remains Bearish On OTLK

Retail sentiment surrounding OTLK on Stocktwits remained in the ‘bearish’ zone over the past 24 hours, amid a 330% jump in message volumes.

One user said the company didn’t raise enough funds.

Another user felt the offering should have been carried out when the stock traded around $1.60.

The stock has seen strong buying interest so far in 2026, gaining over 60%.

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