CDT Shares Plunge 24.44% Post 1-for-8 Reverse Split Amid Liquidity Concerns

CDT (NASDAQ: CDT) shares plunged 24.44% on Thursday, marking a four-day losing streak with a cumulative drop of 40.90%. The stock hit an intraday low of $0.42, its weakest level since May 2025, as the 1-for-8 reverse stock split implemented on October 10 intensified market skepticism. The consolidation of shares from ~10.8 million to 1.35 million was framed by the company as a strategic move to strengthen capital-raising capabilities and maintain Nasdaq compliance, but investors interpreted the action as a signal of underlying liquidity pressures.

The reverse stock split follows a similar 1-for-15 split in May 2025, which triggered a short-term selloff. While CDT emphasized its transformation into an AI-driven biopharma platform through partnerships like the expanded collaboration with Sarborg Limited, the repeated share reductions have eroded investor confidence. The company’s recent focus on repurposing drugs via machine learning and advancing solid-form chemistry innovations contrasts with persistent concerns over Nasdaq compliance, including a March 2025 warning over bid price thresholds that were only resolved in May.

Key milestones such as the May 2025 patent approval for AZD1656 and the March 2025 progress in Phase II trials for the same compound highlight CDT’s R&D momentum. However, these developments predate the recent reverse split and are unlikely to offset broader market doubts. The February 2025 debt restructuring—repaying a senior secured note and converting part of its debt—improved the balance sheet but occurred outside the current price decline timeframe.

Analysts note that reverse splits often correlate with declining investor sentiment, particularly for micro-cap stocks. While CDT’s management insists the move is proactive, the lack of immediate follow-through on capital-raising or strategic acquisitions has left the market unconvinced. The company’s ability to attract institutional investors or demonstrate tangible progress in its AI-driven drug pipeline will be critical to restoring stability. For now, the repeated share consolidations and unresolved liquidity risks continue to weigh on the stock’s near-term prospects.