SPRY, PASG, BOXL: Why These Stocks Plunged Double Digits In After-Hours Trading Today

• ARS Pharmaceuticals shares tumbled after the company said Neffy failed to secure expanded commercial insurance coverage for the July 1 review cycle. 
• Passage Bio shares fell after the company agreed to merge with Remix Therapeutics in an all-stock deal.
• Boxlight shares dropped after hours following a speculative rally fueled by the company's recent 1-for-6 reverse stock split. 

ARS Pharmaceuticals (SPRY), Passage Bio (PASG), and Boxlight Corp. (BOXL), all small-cap stocks, posted double-digit losses in after-hours trading on Wednesday as investors digested new business developments.

SPRY Faces Coverage Setback

ARS Pharmaceuticals shares came under heavy selling after investors reacted to an update on insurance coverage for Neffy, the company's needle-free treatment for severe allergic reactions. 

The stock fell after the company said talks with health insurers did not lead to broader coverage for the July 1 review cycle. Investors saw the setback as a challenge to sales growth and increased product use. 

Commercial insurance support often plays a major role in determining how quickly newly approved therapies gain traction. Additionally, the company lowered its projected 2026 cash-based operating expense forecast to approximately $248 million. 

ARS Pharmaceuticals’ stock traded over 24% lower overnight. On Stocktwits, retail sentiment around the stock improved to ‘neutral’ from ‘bearish’ the previous day. 

PASG Drops Following Deal Announcement

Passage Bio declined after unveiling a merger agreement involving Remix Therapeutics, Inc. The companies have agreed to combine through an all-stock transaction that will create a publicly traded biotechnology company focused on RNA-processing therapies. 

The merged business plans to operate as Remix Therapeutics and list its shares on Nasdaq under the ticker symbol RMTX following the completion of the deal with existing Passage Bio shareholders expected to own roughly 7% of the combined entity. 

The transaction is accompanied by an oversubscribed private financing expected to generate approximately $100 million in gross proceeds from a group of investors led by Decheng Capital.

Passage Bio stock traded over 15% lower overnight. Retail sentiment around the stock improved to ‘extremely bullish’ from ‘bullish’ territory the previous day. 

Post-Split Volatility Drives Sharp Reversal In BOXL After Massive Rally 

Boxlight shares pulled back in after-hours trading after jumping 37% during the regular session. The education technology company, which recently completed a reverse stock split to remain listed on Nasdaq, saw investors take profits after a surge driven by heavy speculative buying. 

The decline followed a daytime surge that pushed shares significantly higher before momentum faded. Traders appeared to reassess positions after a rapid advance fueled by heavy volume and a reduced share count.

On Monday, Boxlight implemented a 1-for-6 reverse stock split, which reduced the number of authorized Class A shares, creating a much tighter trading float and increasing the stock’s sensitivity to buying and selling activity.

Boxlight stock traded over 17% lower overnight. Retail sentiment around the stock jumped to ‘extremely bullish’ from ‘neutral’ territory the previous day. 

So far this year, PASG and BOXL stocks have plunged 50% and 52%, respectively, while SPRY stock has declined 9%. 

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