TNF Pharmaceuticals (TNFA) Tumbles 33.33% as Reverse Split and Financial Woes Spark 46.33% Two-Session Slide

The share price of TNF Pharmaceuticals (TNFA) plummeted to a record low on Friday, with an intraday decline of 33.33%, marking a 46.33% drop over two trading sessions. The selloff reflects a convergence of operational, financial, and technical vulnerabilities that have eroded investor confidence in the micro-cap biotech firm.

Technical indicators highlighted extreme fragility, as the stock collapsed below its 200-day moving average by over 90%. A reverse stock split announced during the selloff—set to take effect at the end of the month—was widely perceived as a desperate liquidity measure rather than a strategic restructuring. Traders noted the lack of options liquidity and heavy selling pressure, exacerbated by leveraged positions and stop-loss triggers, further accelerating the decline.

Financial fundamentals underscore the company’s precarious position. TNFA reported no revenue and a negative EPS of -$2.31, with liquidity ratios below 1, signaling an inability to meet short-term obligations. Its $0.9 million market capitalization and dwindling cash reserves leave little room to fund ongoing research or navigate regulatory hurdles. The absence of near-term revenue milestones or partnership announcements has left the stock vulnerable to speculative sentiment swings.

While TNFA’s drug development pipeline includes pre-revenue candidates like Isomyosamine and Supera-CBD, these programs lack near-term catalysts such as clinical trial approvals or commercialization timelines. Regulatory uncertainties and high R&D costs amplify risks for a company with limited resources. Strategic alliances, such as collaborations with the DADA2 Foundation, offer long-term potential but provide no immediate relief for liquidity or investor trust.

Market perception of the reverse stock split—coupled with the absence of institutional buying—has deepened concerns about the company’s viability. Short-term traders remain divided, with some viewing the 90% discount to the 200-day moving average as a contrarian opportunity. However, most analysts emphasize the stock’s high-risk profile without concrete funding or pipeline breakthroughs. The selloff underscores the volatility inherent in micro-cap biotechs, where speculative bets often hinge on regulatory outcomes and capital availability.