Curanex Pharmaceuticals Inc. (NASDAQ: CURX) Plunges 83.46% to Record Low Amid Post-IPO Volatility

Curanex Pharmaceuticals Inc. (NASDAQ: CURX) experienced a dramatic plunge in its share price, falling 83.46% to a record low on September 17, 2025, with an intraday drop of 85.04%. The sharp decline marked a stark contrast to earlier market optimism following the company’s financial milestones in late August and early September.

The company’s recent Initial Public Offering (IPO) on August 27, 2025, raised $15 million through the sale of 3.75 million shares priced at $4.00 each, providing critical capital to advance its botanical drug pipeline. The offering, underwritten by Dominari Securities LLC and co-underwriters, was fully subscribed, reflecting initial investor confidence in Curanex’s focus on inflammatory disease treatments, particularly its lead candidate Phyto-N for ulcerative colitis.

Further capital inflow occurred on September 12, 2025, when underwriters exercised the over-allotment option, purchasing an additional 562,500 shares at $4.00 each. This raised an extra $2.25 million, bringing total proceeds to $17.25 million. The exercise of the greenshoe option typically signals strong demand for shares and aims to stabilize post-IPO volatility. However, the subsequent market reaction diverged sharply, with the stock plummeting to unprecedented lows.

Proceeds from both fundraising efforts are earmarked for FDA-mandated toxicology studies, preparation of an Investigational New Drug application, and operational expenses. The company’s emphasis on botanical therapies positions it in a niche market with growing interest in natural alternatives to synthetic drugs. Despite these strategic moves, the recent price collapse suggests a significant shift in investor sentiment, though the immediate drivers remain unexplained by the company’s disclosures.

The divergence between Curanex’s capital-raising success and its current valuation highlights the inherent risks in developmental-stage biotech firms. While the funds should support clinical progress and reduce reliance on future financing, the stock’s trajectory underscores the challenges of aligning market expectations with long-term research timelines. Investors may need to reassess the company’s risk profile as it navigates regulatory hurdles and competitive pressures in the inflammatory disease space.