Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: AVEO Pharmaceuticals (Nasdaq: AVEO) dropped 11% in intraday trading today after announcing it is issuing additional stock.

So what: AVEO is selling 5.8 million shares for $17.50 per share, an 8% discount to Tuesday's closing price of $19.09. The underwriters will have an option to buy up to 863,000 additional shares to cover any overallotments. The secondary offering should raise about $100 million before discounts and expenses.

Now what: The secondary offering will boost the share count -- and dilute EPS -- by 16% to 19%. In February, AVEO announced a partnership with Japanese drugmaker Astellas, under which AVEO received $125 million upfront and has the potential to receive another $1.3 billion for achieving milestones. Absent the Astellas deal, AVEO has been losing money and burning cash. With $233 billion in cash on the balance sheet and anticipated milestone payments, the need to raise roughly $100 million more suggests substantial product revenue and profits could take longer than previously anticipated.

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Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.