This Biotech Stock Crashed 28% Today After Announcing Second Reverse Share Split This Year

Profusa is set to implement a 1-for-25 reverse stock split on July 7.

• Profusa expects its outstanding common shares to decline from around 13.2 million to about 530,000 after the consolidation becomes effective.
• The move comes less than five months after the company completed a 1-for-75 reverse stock split.
• PFSA shares fell below $1 on April 10 and have failed to surpass the level since.

Shares of Profusa (PFSA) hit a record low on Thursday, crashing 28% after the biotech company announced its second reverse stock split of the year.

Profusa said it will implement a 1-for-25 reverse stock split, effective July 7, 2026. The company's shares will continue trading under the same ticker.

Following the action, Profusa expects its outstanding common shares to decline from around 13.2 million to about 530,000, while the number of authorized shares will remain unchanged at 601 million.

Last month, Profusa’s shareholders voted to effect one or more reverse splits over the course of the next two years at a ratio of between 1-for-5 and 1-for-200. The final ratio would be determined by the board of directors.

PFSA’s February Consolidation

The move comes less than five months after Profusa completed a 1-for-75 reverse stock split. PFSA shares fell below $1 on April 10 and have since failed to breach the crucial level. 

Nasdaq requires listed companies to maintain a minimum bid price of $1. If a stock remains below that level for an extended period, it risks being delisted from the exchange.

PFSA’s Pursuit Of Recurring Revenue Opportunities

The company has been looking to expand its diagnostic capabilities. In April, it announced plans to acquire the PanOmics molecular diagnostics platform from BioInsights for about $30 million.

Profusa said the acquisition would complement its real-time biosensing technology and support new applications, including pancreatic cancer monitoring and other recurring-revenue opportunities.

Retail’s Take On PFSA

Retail sentiment surrounding PFSA flipped to ‘bullish’ from ‘bearish’ a day earlier, while message volumes surged by over 400%.

PFSA shares have fallen around 70% over the past month.

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