LENZ Therapeutics Shares Plunge 24.39% as Q3 SG&A Costs Surge 116% on Marketing Push

LENZ Therapeutics (LENZ) fell to its lowest level since April 2025 on Nov. 6, with a 24.39% intraday decline. The stock closed at $25.42, reflecting investor concerns over the biotech firm’s financial health amid aggressive spending on commercialization and a newly launched product. The sharp drop follows a Q3 earnings report highlighting a 116% surge in selling, general, and administrative expenses to $27.6 million, driven by marketing and direct-to-consumer campaigns for its FDA-approved pilocarpine-based eye drop, VIZ.

The product, launched in October 2025, secured 5,000 prescriptions in its first month and engaged 2,500 eye care professionals, yet contributed limited revenue in Q3. The company reported $12.5 million in revenue, exceeding estimates but offset by a net loss of $16.7 million. Analysts remain optimistic, with a median 12-month price target of $53.00, but investors remain wary of the firm’s ability to balance high operational costs with profitability. Strategic moves, including a celebrity-endorsed DTC campaign and a licensing deal for VIZ in Canada, aim to expand market reach but require sustained revenue growth to justify current spending.

LENZ’s $324 million in cash reserves provide flexibility for R&D and marketing, yet the absence of near-term financial guidance has fueled uncertainty. The stock’s underperformance relative to the S&P 500 underscores risks tied to its aggressive commercialization strategy, with $80–100 million allocated for 2026. While the product’s innovative positioning in the presbyopia market and strong industry analyst ratings suggest long-term potential, near-term profitability hinges on VIZ’s adoption rates and cost management. Investors will closely monitor whether the company can translate early prescription success into sustainable revenue without further diluting shareholder value.