Atossa Therapeutics said last week that its board has approved a reverse stock split of the company’s common stock, at a ratio of 15:1, with an effective time of 12:01 a.m. Eastern Time on February 2, 2026.
- Each of 15 shares of the company’s common stock outstanding was combined into one new share of common stock.
- No fractional shares were issued as a result of the split.
- In January, the FDA granted Orphan Drug Designation to Atossa’s (Z)-endoxifen for the treatment of Duchenne muscular dystrophy.
Shares of Atossa Therapeutics Inc. (ATOS) fell a steep 32% on Monday after the stock began trading on a split adjusted basis at trade open.
Atossa said last week that its Board of Directors has approved a reverse stock split of the company’s common stock, at a ratio of 15:1, with an effective time of 12:01 a.m. Eastern Time on February 2, 2026.
Each of 15 shares of the company’s common stock outstanding was combined into one new share that started trading on a split-adjusted basis on Monday. No fractional shares were issued as a result of the split.
New Designations
In January, the U.S. Food and Drug Administration (FDA) granted Orphan Drug Designation to Atossa’s (Z)-endoxifen for the treatment of Duchenne muscular dystrophy. The drug was previously granted Rare Pediatric Disease designation for the treatment of DMD as well.
Duchenne muscular dystrophy is a severe, progressive, X-linked genetic disorder, primarily affecting boys, characterized by the lack of the protein dystrophin, leading to muscle degeneration.
The orphan drug designation is granted to therapies intended to treat rare diseases and offers incentives such as regulatory support. The drug is yet to be approved for any indication. However, the FDA gave clearances for studying the drug in metastatic breast cancer earlier in January.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around ATOS stock stayed within the ‘bullish’ territory, while message volume remained at ‘high’ levels.
A Stocktwits user highlighted concerns about a potential dilution. The company has cash and cash equivalents of $51.8 million as of September end.
Another said that they are “relieved” the company didn’t get delisted.
ATOS stock has lost 54% over the past 12 months.
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