Aldeyra Therapeutics Shares Plunge Following Quarterly Report

Biotechnology firm Aldeyra Therapeutics experienced a significant sell-off after releasing its latest earnings figures. The company's stock plummeted 5.93% during yesterday's trading session, closing at $4.92. This decline extends a broader downward pattern that has been evident throughout seven of the previous ten trading days.

Aldeyra reported a net loss of $7.7 million for the third quarter of 2025. While the company has made substantial progress in cost reduction, with research and development expenses falling from $12.4 million to $5.4 million and general administrative costs decreasing from $3.7 million to $2.6 million, these measures failed to reassure the investment community.

A more positive aspect emerges from the company's balance sheet. Aldeyra maintains a solid liquidity position with $59.3 million in cash and $16 million in marketable securities, providing what management describes as sufficient funding through the second half of 2027.

Key Financial Metrics:
* Q3 Net Loss: $7.7 million
* R&D Expenditures: $5.4 million
* Administrative Costs: $2.6 million
* Total Liquidity: $75.3 million
* Runway Through: Second Half 2027

Should investors sell immediately? Or is it worth buying Aldeyra Therapeutics?

Technical Analysis Points to Continued Pressure

From a technical perspective, the outlook remains challenging. Both short-term and long-term moving averages are indicating bearish sentiment. Since reaching its pivot high on October 3, the equity has surrendered 14.3% of its value. The share price now faces technical resistance at $5.10 and $5.25—levels that would need to be decisively broken to signal any potential trend reversal.

Pipeline Developments Offer Potential Catalysts

Despite the current market weakness, Aldeyra continues to advance its clinical development programs. The company announced positive results from its Phase 2 trial of ADX-629 for alcohol-associated hepatitis. Management is now shifting focus toward its next-generation therapeutics pipeline, including ADX-248 and ADX-246, which target dermatological, metabolic, and retinal conditions.

Significant regulatory milestones are also on the horizon. The U.S. Food and Drug Administration is currently reviewing the resubmitted New Drug Application for Reproxalap as a treatment for dry eye disease, with a decision expected by December 16, 2025. Additionally, the therapy ADX-2191 has received both Orphan Drug designation from European regulators and Fast Track designation from the FDA.

Whether these upcoming regulatory decisions can reverse the current negative momentum remains uncertain. The month of December could potentially deliver the catalyst needed for a recovery—or confirm the ongoing downward trajectory.