SPRY Stock Plunges 23% After ARS Pharmaceuticals Fails to Secure Major Commercial Insurance Wins for Neffy
Shares of ARS Pharmaceuticals (SPRY) tumbled more than 23% in after-hours trading Wednesday after the company disclosed it had not secured any new major commercial insurance coverage for its neffy nasal spray, effective July 1. The sharp selloff erased a significant portion of the stock's year-to-date gains and underscored investor frustration over the pace of payer adoption for the needle-free epinephrine device.
Investors had been closely watching the July 1 coverage cycle, hoping ARS would announce new formulary placements with large commercial insurers. Instead, the company said it did not gain any significant new commercial coverage decisions for that date. ARS noted it remains in active negotiations with several large payers and plans to focus on expanding payer access in the second half of the year.
The lack of commercial progress leaves many patients reliant on either higher out-of-pocket costs or the company’s cash-pay program, which could limit the drug's uptake among the broader allergic-reaction market. Neffy is the first nasal spray alternative to traditional epinephrine auto-injectors like EpiPen, and its commercial success hinges on widespread insurance coverage to drive adoption beyond early adopters.
On a more positive note, ARS did secure additional Medicaid coverage, including in Florida. While these wins improve access for some patients, Medicaid typically represents a smaller portion of the overall market opportunity compared to the commercially insured population, which accounts for the bulk of potential neffy users.
Alongside the coverage update, ARS Pharmaceuticals revised its financial guidance. The company lowered its expected 2026 operating expenses to $248 million, signaling tighter cost controls. It also reaffirmed its goal of reaching cash flow break-even in 2027. Management emphasized that demand for neffy continues to rise and that the product remains available to most commercially insured patients through existing coverage or the company's patient support programs.
Neffy, approved by the FDA for the emergency treatment of severe allergic reactions including anaphylaxis, has emerged as a key growth driver for ARS. At the end of the first quarter, roughly 120,000 patients were using the spray in the U.S., including 29,500 new patients added during the period. For the full year 2025, neffy generated $72.2 million in U.S. net sales, representing about 86% of the company's total revenue.
On Stocktwits, retail sentiment around SPRY stock remained in 'bearish' territory over the past 24 hours, while message volume surged from 'low' to 'high' levels. Some users expressed skepticism about neffy's commercial trajectory, with one user questioning whether the product can overcome insurance hurdles. However, another user termed the after-hours selloff an 'overreaction,' suggesting the fundamental demand story remains intact.
SPRY stock has lost roughly 8% year-to-date, with Wednesday's after-hours decline dragging it further into negative territory for 2025.
For updates and corrections, email newsroom[at]stocktwits[dot]com.
Anan Ashraf has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits.