ARS Pharmaceuticals (SPRY) Shares Rise 0.79% Amid Revenue Estimate Cuts

ARS Pharmaceuticals (SPRY) shares rose 0.79% today, marking the lowest intraday decline of 3.72% since March 2025.

The strategy of buying SPRY shares after they reached a recent low and holding for 1 week yielded moderate returns over the past 5 years, with a 33.33% increase in the total portfolio value. This indicates a relatively stable and conservative investment approach, suitable for investors seeking consistent, if not high, returns. However, the overall performance was somewhat muted, with the S&P 500 index outperforming the strategy by approximately 10 percentage points. This suggests that while the strategy minimized risks, it may not have fully capitalized on broader market opportunities.

Analysts have recently reduced ARS Pharmaceuticals, Inc.'s revenue estimates by 15%, which has been viewed negatively by investors. This reduction in revenue projections comes at a time when the company is already facing financial challenges, as evidenced by its Q1 net loss of $33.9 million for 2025. Despite this loss, the company reported revenue growth, with Q1 2025 revenue from the launch of neffy reaching $7.8 million, surpassing the anticipated consensus of $7.48 million.

The cost of goods sold is expected to increase as the company exhausts its zero-cost inventory, adding to the financial pressures. Additionally, the market share for neffy is currently low at 1.3%, although it is higher among targeted high-prescribing physicians. This limited market penetration could be a concern for investors, as it suggests that the product may not be gaining traction as quickly as hoped.

However, there are also positive developments for ARS Pharmaceuticals. Neffy received FDA approval for a 1-milligram dose for children, expanding its market potential. The company has also expanded commercial insurance coverage for neffy from 27% to 57%, with ongoing efforts to reach 80% coverage by Q3 2025. This increased coverage could help to drive sales and improve the product's market penetration.

Furthermore, a strategic collaboration with ALK-Abelló has expanded the company's promotional network significantly. This partnership could help to increase awareness of neffy and drive sales, potentially offsetting some of the financial challenges faced by the company. Overall, while there are certainly challenges ahead for ARS Pharmaceuticals, there are also reasons for optimism, and investors will be watching closely to see how the company navigates these issues in the coming months.