ARS Pharmaceuticals (NASDAQ:SPRY) reported $33.4 million in third-quarter U.S. net product revenue from its needle-free epinephrine treatment neffy and reaffirmed its goal of reaching cash flow breakeven by the end of 2027.
President and CEO Donn Casale said neffy’s share of the U.S. epinephrine market exceeded 5%, up from 4% a year earlier, as end-user demand rose 42%. The company is shifting its commercial strategy toward targeted provider engagement while reducing broad consumer advertising.
Total revenue rose to $37.7 million from $32.5 million in the third quarter of 2025. In addition to neffy’s U.S. sales, the latest quarter included $2.6 million in supply revenue outside the U.S. and $1.7 million in collaboration revenue.
Targeted Accounts Drive Market Share Gains
Casale said neffy’s share in field-targeted accounts rose to 9% from 6% a year earlier, compared with 2% in non-targeted accounts. The targeted accounts represent about 44% of the overall market opportunity, he said.
More than 19,000 unique providers prescribed neffy during the quarter, up 49% year over year, bringing the total since launch to nearly 45,000, according to Casale.
Chief Commercial Officer Meg Smith said the company is moving to an account-based sales approach that engages not only prescribers but also nurses, office staff and others involved in prescriptions and insurance authorizations. A new marketing campaign is expected to launch in early 2027.
Smith said prior authorization is the biggest source of lost conversions from prescriptions to filled orders. Most prior authorization requests submitted for neffy are approved, she said, and the company is working with offices to support those submissions.
Asked about CVS formulary coverage, Smith declined to discuss specific plans or payers. She said more than 80% of commercial lives have coverage for neffy, although some require prior authorization, and that ARS is in discussions with remaining Medicaid states and commercial plans.
Casale said the company expects to complete the operational rollout of its commercial reset over the next quarter, with financial benefits becoming increasingly visible through the first half of 2027.
Spending Cuts and Cash Outlook
Total operating expenses were $71.9 million in the quarter, including stock-based compensation. Selling, general and administrative expenses fell to $43.5 million, more than 40% below the quarterly average for the first half of 2026.
CFO Kathy Scott attributed much of the reduction to the discontinuation of linear television advertising, less broad consumer advertising and more targeted commercial spending. ARS plans to sustain the lower SG&A run rate through 2027.
Research and development expenses were $18.3 million, including a one-time $12.5 million upfront payment for exclusive worldwide rights to certain intellectual property. Scott said the agreement supports expansion of the company’s needle-free delivery platform in and beyond anaphylaxis, but did not provide further specifics.
ARS ended the quarter with $138.4 million in cash, equivalents and short-term investments. Scott said the company expects to provide its full-year 2027 financial outlook alongside fourth-quarter results.
During the question-and-answer session, Scott said inventory fluctuations were the primary reason net revenue did not rise as quickly as end-user demand. She said the company’s gross-to-net figure remained around 50%, consistent with its expectations.
ARS-2 Trial Data Expected in 2027
ARS also is developing ARS-2 as a potential on-demand treatment for breakthrough flares in chronic spontaneous urticaria, a condition characterized by episodes of severe itching and hives.
Casale said there are currently no FDA-approved therapies indicated to stop a breakthrough flare in progress. In a completed phase II trial, ARS-2 improved itch and hive scores beginning as early as five minutes after dosing, he said.
An exploratory phase IIb trial is evaluating 0.5-milligram and 1-milligram doses to identify the minimum effective dose. ARS expects interim data in the first quarter of 2027 and full data later that year; the findings will help guide plans for a phase III registration program, Casale said.
About ARS Pharmaceuticals (NASDAQ:SPRY)
ARS Pharmaceuticals, Inc (NASDAQ: SPRY) is a biopharmaceutical company focused on developing and commercializing treatments for severe allergic reactions. The company’s lead product is neffy (epinephrine nasal spray), a needle-free alternative to injectable epinephrine designed for the emergency treatment of allergic reactions, including anaphylaxis.
Neffy was approved by the U.S. Food and Drug Administration in 2024 for adults and pediatric patients who weigh at least 30 kilograms. The product is intended to provide rapid, convenient administration without requiring a syringe or injector, which may help address barriers associated with the use of traditional epinephrine auto-injectors.
