CorMedix Inc. (NASDAQ: CRMD) shares plummeted 24.79% in intraday trading, despite the company reporting positive fourth-quarter results and providing optimistic revenue guidance for the first half of 2025. The sharp decline comes as investors grapple with the biopharmaceutical firm's announcement of a new Phase 3 study, raising concerns about future expenses and growth prospects.

CorMedix reported its first-ever profitable commercial quarter in Q4 2024, with net income of $13.5 million and earnings per share of $0.22. The company's net revenue for Q4 reached $31.2 million, contributing to a full-year 2024 revenue of $43.5 million. These figures were largely driven by the successful implementation of DefenCath by outpatient dialysis customers following its launch in July 2024. Additionally, CorMedix provided preliminary net revenue guidance for the first half of 2025, projecting $50 - $60 million, with more than $33 million expected in the first quarter.

However, the positive financial results were overshadowed by the company's announcement to commence a Phase 3 study of DefenCath in patients receiving Total Parenteral Nutrition (TPN) in Q2 2025. This new clinical trial, while potentially expanding DefenCath's market reach, could also represent significant future expenses. The market's negative reaction suggests that investors may have had higher expectations for growth or are concerned about the company's ability to maintain profitability while investing in new studies. As CorMedix continues to navigate its commercial phase and expand DefenCath's applications, the stock's performance will likely remain sensitive to the company's ability to balance growth investments with meeting market expectations.