ARS Pharmaceuticals Inc (NASDAQ: SPRY) saw its stock plummet 5.59% in pre-market trading on Friday, following the company's fourth quarter and full year 2024 earnings release and a subsequent analyst price target cut.

The decline comes as Leerink Partners lowered their price target on ARS Pharmaceuticals from $27 to $26, signaling some caution despite the company's progress with its flagship product, neffy, a needle-free epinephrine nasal spray. This adjustment in valuation likely contributed to investor concerns, leading to the sharp stock decline.

During the earnings call, ARS Pharmaceuticals highlighted several key developments and future plans: 1. The company reported $7.3 million in net product revenue for neffy in the U.S. since its launch in September 2024. 2. ARS aims to achieve 80% unrestricted commercial insurance coverage for neffy by early summer 2025. 3. A direct-to-consumer advertising campaign for neffy is planned to launch in May 2025, with a projected spend of $40-50 million. 4. The company ended 2024 with $314 million in cash and investments, providing a runway of at least three years. 5. Operating expenses for 2025 are projected to be $200-210 million, excluding cost of goods sold and stock-based compensation.

While ARS Pharmaceuticals demonstrated progress with neffy's commercialization and outlined ambitious plans for 2025, the stock's decline suggests that investors may be concerned about the increased spending and the time it might take for neffy to gain significant market share in the competitive epinephrine market. The coming months will be crucial for ARS Pharmaceuticals as they work to expand insurance coverage and launch their marketing campaign to drive neffy adoption.