The precipitous decline marks a reversal for the company, which had previously painted a bullish picture of its market access. During a March 2025 earnings call, CEO Richard Lowenthal projected that the company would achieve over 80% prior authorization coverage by the summer, bolstered by inclusion in the Caremark formulary. Chief Commercial Officer Eric Karas added to these expectations, targeting 60% commercial coverage by the end of the first quarter. Neither objective was met in the subsequent July 2026 payer cycle.
In section Releases
Investors Scrutinize ARS Pharmaceuticals After Failed Coverage Projections
A 23% plunge in ARS Pharmaceuticals stock followed the June 24, 2026, disclosure that the company’s drug, Neffy®, failed to secure any new commercial formulary additions during the July review cycle. The sharp market correction triggered a securities fraud investigation by law firm Levi & Korsinsky into the company’s prior commercial growth forecasts.
Legal representatives at Levi & Korsinsky are now examining whether these executive statements, combined with an April 29, 2026, proxy filing claiming 90% overall commercial coverage, misled shareholders. The filing made no mention of the potential for a stagnant July review cycle, leaving investors unprepared for the disclosure that resulted in the double-digit drop in share value. The investigation focuses on the discrepancy between the company’s public assurances of broad, unrestricted access and the reality of the zero-growth formulary outcome.
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