SPRY Stock Tanks Over 23% After-Hours — ARS Pharmaceuticals Reports No New Major Insurance Wins For Neffy

• The company lowered its expected operating expenses for 2026 to $248 million, reflecting tighter cost controls.
• It also reaffirmed its target of reaching cash flow break-even in 2027. 
• Management highlighted that demand for neffy continues to grow.

Shares of ARS Pharmaceuticals (SPRY) dropped by over 23% after-hours on Wednesday after the company said it did not secure any new major commercial insurance coverage for its neffy nasal spray effective July 1.

Disappointment On Commercial Coverage

Investors were hoping the company would announce new formulary wins with large commercial insurers during the latest coverage cycle. But ARS said it did not gain any significant new commercial coverage decisions that will take effect on July 1. The company added that it remains in active negotiations with several large payers and that it remains focused on expanding payer access in the second half of the year.

Without broader commercial coverage, many patients will continue to face higher out-of-pocket costs or rely on the company’s cash-pay option.

On a more positive note, ARS reported that it did secure additional Medicaid coverage, including in Florida. The company said these wins will help improve access for some patients, though Medicaid generally represents a smaller portion of the overall market opportunity compared to commercial insurance.

SPRY Cuts Spending And Reaffirms Path To Profitability

ARS Pharmaceuticals also provided updated financial guidance. The company lowered its expected operating expenses for 2026 to $248 million, reflecting tighter cost controls. It also reaffirmed its target of reaching cash flow break-even in 2027.

Management highlighted that demand for neffy continues to grow and said the product remains available to most commercially insured patients through existing coverage or the company’s patient support programs.

Neffy is an epinephrine nasal spray used for the emergency treatment of severe allergic reactions, including anaphylaxis. It is the first needle-free alternative to traditional epinephrine auto-injectors.

Around 120,000 patients were using neffy in the U.S. at the end of the first quarter, including 29,500 new patients added during the period. For full-year 2025, neffy generated $72.2 million in U.S. net sales, accounting for nearly 86% of the company’s total revenue during the year.

How Did SPRY Retail Traders React?

On Stocktwits, retail sentiment around SPRY stock stayed within the ‘bearish’ territory over the past 24 hours while message volume rose from ‘low’ to ‘high’ levels.

A Stocktwits user expressed lack of confidence in the company’s neffy product.

Another user, however, termed the after-hours selloff an "overreaction."

SPRY stock has lost about 8% year-to-date.

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