Regarding stocks falling 80 or 90% and whether that means that...

Regarding stocks falling 80 or 90% and whether that means that the market is pricing them correctly when they fall that far. Maybe sometimes they are when there is no prospect for success but often it's just unjustified fear to an extreme as I believe it is in this case.
From late 2017 to 2020, PLS dropped from $1.20 to 13c for a drop of 90%. Did that spell the end of the company or value it coreectly? What followed was a rally from 13c to $5.70 for a 44 fold increase. Then another big drop over the last 2 years. Markets get pricing wrong over and over and over again, both to the upside and to the downside and often to extremes. Greed and fear makes markets very inefficient in valuing stocks. Anyone selling only because a sp is down heavily and listening to social media opinions on what that means probably shouldn't be in the market.
LTP has fallen a similar 87% from peak to low for a number of reasons that have compounded. It probably got overbought too quickly, reached a high near a stock market high and then got caught in a pharma sell-off on JFK fears on his impact on the Fed, Trumps Tariffs and their potential impact on the pharma sector (despite not effecting LTP that will manufacture in the US for US sales) and the big drop in markets that followed.
The question for me now is the size and duration of the rally that eventually follows this big drop. No need for any cr with around $30mill cash allows LTP to whether the storm and prepare for increasing sales here, then the US early next year and FDA submission next year.