RE:RE:RE:RE:RIPIt's typically a pretty bearish indicator. You can find positive examples of a reverse stock split working a la Citigroup, but in the context of THTX so far it's definitely a bearish sign. It certainly doesn't provide any real reassurance that they think the stock price will be meaningfully higher before they potentially could be delisted.
The only way this works well for them is if they follow this in the next week or so with another much more positive press release regarding something like a partnership. That could push the stock price higher and you could see larger institutions take interest at those share prices with that information rather than a low $1+ share price.