CLSD Plummets 27% on Chapter 11 Filing: A Bankruptcy Auction or a Biotech Comeback?

Summary
• Clearside Biomedical (CLSD) plunges 26.9% intraday to $0.4101, hitting its 52-week low of $0.3701
• Company files for Chapter 11 bankruptcy, seeking a structured auction of its SCS Injection Platform and CLS-AX pipeline
• CEO George Lasezkay highlights 'attractive assets' but equity holders face potential dilution in the liquidation process

Clearside Biomedical’s stock has imploded following its Chapter 11 filing, with the biotech giant’s shares trading near their 52-week low. The company’s decision to pursue a court-supervised asset auction has triggered a liquidity crisis, as stakeholders weigh the value of its suprachoroidal delivery platform against its financial liabilities. With a 34.7% turnover rate and a dynamic PE of -8.6, the market’s bearish sentiment is palpable.

Chapter 11 Filing Triggers Immediate Sell-Off
Clearside Biomedical’s Chapter 11 filing has ignited a liquidity-driven selloff, as the company seeks to liquidate its SCS Microinjector platform and CLS-AX pipeline under Section 363 of the Bankruptcy Code. The filing, announced on November 24, 2025, aims to maximize stakeholder value by auctioning assets including its FDA-approved XIPERE and Phase 3-ready CLS-AX for wet AMD. However, equity holders face near-total dilution, as proceeds will first satisfy secured creditors. The CEO’s assertion of 'attractive assets' contrasts with the stock’s 94% annual decline, reflecting market skepticism about the platform’s commercial viability post-liquidation.

Bearish Technicals and High-Volatility Options: A Short-Term Play
• RSI: 9.20 (oversold)
• MACD: -0.659 (bearish), Signal Line: -0.292, Histogram: -0.367
• 200D MA: $1.51 (far above current price)
• Bollinger Bands: Lower bound at $0.846 (CLSD trading 83% below)

Clearside’s technicals confirm a terminal bearish trend, with RSI at extreme oversold levels and MACD diverging sharply from price. The stock is trading 83% below its 200-day moving average, suggesting no near-term support. The lone listed option, CLSD20260417C0.5, offers a 76.78% implied volatility but a 44.26% delta and 2.01 gamma, indicating sensitivity to price swings. A 5% downside scenario (to $0.39) would yield zero payoff for the call, while a 5% rally (to $0.43) would barely cover the strike price. Aggressive short-sellers may target the $0.3701 intraday low as a potential floor, but liquidity constraints and bankruptcy uncertainty make this a high-risk trade.

Backtest Clearside Biomedical Stock Performance
The backtest you requested is ready. Please refer to the interactive panel on the right for full details of the strategy configuration and its performance.Key takeaway: this simple “buy-the-plunge” rule did not yield attractive risk-adjusted returns on CLSD.O over 2022-2025. You may consider refining entry criteria, shortening the holding window, or adding fundamental filters to improve performance.

Bankruptcy Auction: A High-Risk Gamble for Biotech Speculators
Clearside Biomedical’s Chapter 11 filing has created a binary outcome for investors: either a liquidation-driven asset sale or a rare revival via a strategic acquirer. With the stock near its 52-week low and technicals pointing to further downside, the immediate outlook remains bearish. However, the company’s SCS platform and CLS-AX pipeline could attract niche buyers, particularly in the suprachoroidal delivery space. Monitor the bankruptcy court docket for bidding procedures and stalking-horse bids. Meanwhile, sector leader Amgen (AMGN) is down 0.29%, signaling broader biotech caution. For CLSD, watch the $0.37 level for a potential floor—break below it, and the stock could trade as a speculative penny stock.