Petros Pharmaceuticals hit an all-time low after a 1-for-25 reverse stock split, drawing bullish retail chatter even as delisting risks and mounting losses weighed on the stock.

Shares of Petros Pharmaceuticals sank to an all-time low on Wednesday after the company enacted a 1-for-25 reverse stock split, triggering a wave of retail investor chatter and raising fresh concerns about its Nasdaq listing status.

The split, which became effective after markets closed Wednesday, aimed to lift Petros’ share price above Nasdaq’s $1 minimum bid requirement. 

While the maneuver shrank the company’s outstanding share count from roughly 53.5 million to about 2.14 million, it failed to stabilize investor sentiment. 

Shares tumbled more than 30% intraday Thursday, hitting a split-adjusted low of $0.012 — the stock’s lowest level since its 2020 debut.

Despite the steep sell-off, sentiment among retail investors turned “extremely bullish” on Stocktwits amid “extremely high” message volume.

One user said, “Given the incentive to exercise at no cost, they may use the remaining shares to drive the price down further,” adding that volume needed to hit at least 30 million before considering a position. 

Another said the reverse split “might actually be positive,” citing the post-split price as potentially attractive to speculators. “It probably will still be volatile and could go up,” they added.

The steep decline comes as Petros continues to face the risk of delisting from the Nasdaq Capital Market, after previously receiving a noncompliance notice related to minimum stockholders' equity requirements.

In parallel, the company is pivoting from its legacy men’s health products toward regulatory-aligned digital health solutions. 

Petros is developing a software-as-a-medical-device platform that leverages AI and big data to assist pharmaceutical companies with converting prescription drugs to over-the-counter status. 

Management positioned this strategy as well-timed following President Trump’s April 15 executive order titled “Lowering Drug Prices by Once Again Putting Americans First”<—a policy Petros says supports its market transition.

“This Executive Order supports the notion that the under-insured and the American population at large will benefit from expanded access to certain drugs,” said Chief Commercial Officer Fady Boctor. 

He added that Petros’ platform could unlock partnerships with pharmaceutical firms aiming to extend their product lifecycles and reduce drug prices.

But questions remain about the company’s financial health. 

For the year ended Dec. 31, 2024, Petros reported revenue of $5.11 million, down from $5.82 million in 2023. 

Net losses widened to $14.32 million from $8.16 million, even as loss per share narrowed to $3.34 from $6.35 due to a higher share count.

Petros shares have tumbled over 99.9% year-to-date, far underperforming the Dow Jones, down 4.1%, the S&P 500, down 5.1%, and the Nasdaq, down 1.6%.

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