The massive sell-off was triggered specifically by the clinical outcome rather than financial guidance or earnings misses. In the LEVEL trial, the drug failed to demonstrate a statistically significant improvement in the six-minute walk distance test compared to a placebo. Furthermore, the company reported no meaningful difference in patient symptom scores on the Kansas City Cardiomyopathy Questionnaire.

While Tenax highlighted exploratory data, such as a 49% reduction in NT-proBNP levels and potential efficacy in severe disease subgroups, the market reaction remained overwhelmingly negative. The investigation, led by Joseph E. Levi, focuses on whether statements made by the company prior to this disclosure misled investors regarding the drug's potential. Investors who purchased shares and suffered losses are currently being encouraged to submit their brokerage records for a no-cost evaluation of their potential claims.