Economic Performance - Texas experienced higher GDP growth compared to most states post-pandemic [1] - Texas also had a lower unemployment rate than most states since the pandemic [1] Financial Distress - Texas is identified as the state with the most people facing financial distress [1]

Management & Transparency Concerns - Management's disclosure decisions raise trust issues [1][8] - Lack of transparency and credibility are significant concerns for investors [1] - Failure to disclose a death in a phase one trial is viewed as a critical oversight [2] Financial Distress & Risk Assessment - The company faces a "perfect storm" of financial distress and management oversight [1] - The company has $800 million in debt with a remaining market capitalization of $1.3 billion, increasing stock volatility due to balance sheet leverage [5] - FDA intervention is considered a worst-case scenario, suggesting further potential downside [3][7] Market Reaction & Trading Activity - Options traders are seeking downside exposure [3] - Put volume traded 20 times its average daily volume, exceeding the entire open interest on the put side [4] - Active put contracts include the $12.5 and $10 strikes, indicating negative sentiment [4] Investment Recommendation - The consensus is to avoid any long exposure to the stock [3][7][8] - News and events do not inspire positive sentiment [6]

Financial Distress - France experienced the largest increase in the proportion of companies facing financial distress last year [1] Economic Factors - The increase in financial distress is attributed to a weak labor market and declining business sentiment in France [1]