ARS Pharmaceuticals Stock Plummets 23% After Neffy Fails to Secure New Formulary Additions

Written by Emily J. Thompson, Senior Investment Analyst

Source: PRnewswire

Updated: 2 days ago

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SPRY-2.01%

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Source: PRnewswire

Significant Stock Drop: ARS Pharmaceuticals' stock plummeted over 23% in after-hours trading on June 24, 2026, after Neffy® failed to secure any new commercial formulary additions in the July payer review cycle, leading to a sharp repricing of the company's commercial outlook.
Executive Forecast Failure: CEO Richard Lowenthal had previously projected in the March 2025 earnings call that Neffy would achieve over 80% prior authorization by early summer, but this target was not met, highlighting a stark disconnect between the company's optimistic projections and actual outcomes.
Unfulfilled Coverage Promises: In an April 2026 proxy filing, ARS claimed to have achieved over 90% overall commercial coverage without mentioning the upcoming July 1 payer review cycle, raising concerns about the company's transparency and communication with investors.
Legal Investigation Initiated: Following the stock decline, ARS Pharmaceuticals is facing a legal investigation from investors regarding potentially misleading statements about Neffy's commercial coverage projections, which could have long-term implications for the company's reputation and shareholder confidence.

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Analyst Views on SPRY

Wall Street analysts forecast SPRY stock price to rise

4 Analyst Rating

4 Buy

0 Hold

0 Sell

Strong Buy

Current: 8.190

Low

30.00

Averages

32.50

High

35.00

Current: 8.190

Low

30.00

Averages

32.50

High

35.00

Cantor Fitzgerald

Overweight

maintain

$12 -> $30

2026-05-28

Reason

Cantor Fitzgerald

Price Target

$12 -> $30

AI Analysis

2026-05-28

maintain

Overweight

Reason

Cantor Fitzgerald raised the firm's price target on ARS Pharmaceuticals to $30 from $12 and keeps an Overweight rating on the shares. Focus has centered on the company's neffy launch, but attention is expected to shift toward ARS-2 for chronic spontaneous urticaria, which is modeled for a 2030 launch with $575M in sales by 2033 and potential to drive meaningful long-term upside if development and commercialization are successful, the analyst tells investors in a research note.

Northland

Outperform

initiated

$25

2026-04-09

Reason

Northland

Price Target

$25

2026-04-09

initiated

Outperform

Reason

As previously reported, Northland initiated coverage of ARS Pharmaceuticals with an Outperform rating and $25 price target. Neffy is a needle-free intranasal epinephrine product that is disrupting the market by addressing well-documented barriers to injectable epinephrine use, the analyst tells investors. The firm expects neffy adoption to be driven by both new prescriptions and conversion from existing injectable users, the analyst added.

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About SPRY

ARS Pharmaceuticals, Inc. is a biopharmaceutical company dedicated to empowering at-risk patients and their caregivers to protect patients from allergic reactions that could lead to anaphylaxis. The Company is commercializing neffy, an epinephrine nasal spray indicated in the United States for emergency treatment of Type I allergic reactions, including anaphylaxis, in adult patients and pediatric patients who weigh 33 lbs. or greater, and in the EU for emergency treatment of allergic reactions (anaphylaxis) due to insect stings or bites, foods, medicinal products, and other allergens as well as idiopathic or exercise induced anaphylaxis in adults and children who weigh 30 kg or greater. neffy is an FDA and European Commission (EC)-approved needle-free epinephrine product, and also has approvals in the United Kingdom, Japan, Australia, and China. It is advancing its nasal spray development program across multiple Type I hypersensitivity reactions, including acute flares of urticaria.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

ARS Pharmaceuticals Announces CEO Succession

11 hours agoNASDAQ.COM

Leadership Change: ARS Pharmaceuticals announced the succession of co-founder Richard Lowenthal as CEO to current President Donn Casale, effective June 6, 2026, marking a significant shift in the company's executive leadership that may impact future strategic direction.
Product Development Journey: During Lowenthal's tenure, he guided the development and commercialization of the lead product neffy, a drug for treating Type 1 allergic reactions, including anaphylaxis in both children and adults; however, the lack of specified reasons for his departure raises concerns about potential impacts on product promotion.
Successor Background: Casale is viewed as an ideal successor with 25 years of experience in the biopharmaceutical industry, having previously served as Chief Commercial Officer at Dynavax Technologies, where he successfully launched the HEPLISAV vaccine, showcasing his strong capabilities in commercial leadership.
Market Reaction: ARS Pharmaceuticals closed at $8.19, down 1.68%, and further declined to $8.13 in after-hours trading, indicating a cautious market response to the leadership change that may affect investor confidence.

ARS Pharmaceuticals Under Investigation for Securities Fraud

21 hours agoGlobenewswire

Securities Fraud Investigation: Pomerantz LLP is investigating ARS Pharmaceuticals for potential securities fraud or unlawful business practices, which could undermine investor confidence and lead to stock price volatility.
Insurance Coverage Failure: On June 24, 2026, ARS disclosed that its epinephrine nasal spray neffy® failed to secure commercial insurance coverage, resulting in a 23.91% drop in stock price to $8.02 per share the following day, indicating market concerns over the product's future.
Investor Contact Information: Pomerantz LLP encourages ARS investors to contact Danielle Peyton via email or phone to join the class action, highlighting the firm's proactive approach in protecting investor rights.
Legal Firm Background: Pomerantz LLP, a leading firm in securities and antitrust class litigation for over 85 years, is dedicated to fighting for the rights of victims of securities fraud, showcasing its authority and influence in the legal field.

ARS Pharmaceuticals Appoints New CEO

22 hours agoseekingalpha

Executive Change: ARS Pharmaceuticals appointed Donn Casale as CEO and director effective July 7, 2026, succeeding co-founder Richard Lowenthal, who stepped down on July 6, 2026, indicating a significant leadership transition within the company.
Leadership Experience: Casale brings over 25 years of commercial leadership experience in the biopharmaceutical sector, having previously served as president of ARS Pharmaceuticals, suggesting that his extensive background may drive future company growth.
Market Reaction: The stock price of ARS Pharmaceuticals plunged 23% as neffy failed to secure insurance coverage, reflecting market concerns regarding the product's market access, which could impact future sales and profitability.
Strategic Challenges: The new CEO's appointment comes at a time when the company faces challenges related to insurance coverage barriers, necessitating Casale to quickly devise strategies to restore investor confidence and drive company growth.

ARS Pharmaceuticals Announces CEO Transition to Donn Casale

22 hours agoNewsfilter

Leadership Change: ARS Pharmaceuticals announced that co-founder and CEO Richard Lowenthal will step down effective July 6, 2026, with Donn Casale taking over on July 7, marking a significant shift in the company's strategic direction aimed at expanding the neffy® product line.
New CEO Background: Donn Casale brings over 25 years of biopharmaceutical experience, previously serving as Chief Commercial Officer at Dynavax Technologies, where he successfully scaled the HEPLISAV-B® vaccine to over $300 million in annual revenue, demonstrating his strong capability in driving market share growth.
neffy® Product Outlook: As a nasal spray for emergency allergic reactions, neffy® is expected to achieve broader market acceptance under Casale's leadership, particularly among the approximately 40 million allergy sufferers in the U.S.
Strategic Goals: The new CEO emphasized a focus on increasing access and accelerating adoption of neffy®, aiming to enhance patient treatment experiences through innovative intranasal technology, thereby creating long-term value for the company.