Pulmatrix shares fall 23.12% intraday as merger with Cullgen faces CSRC delays and exclusivity waiver to explore alternatives.

Pulmatrix fell 23.12% intraday following its announcement to waive the "No Solicitation" clause in its merger agreement with Cullgen, allowing both parties to explore alternative transactions while awaiting China Securities Regulatory Commission (CSRC) approval. The move introduced uncertainty about the merger’s viability, as regulatory delays persisted despite shareholder approval in June 2025. Additionally, the company reiterated plans to divest its clinical assets, including the iSPERSE™ technology, as part of the proposed merger, signaling strategic shifts that raised concerns about operational focus and value retention. These developments, combined with unresolved regulatory hurdles, triggered a sharp sell-off as investors reacted to heightened risks and potential dilution of the merger’s strategic benefits.