Aardvark Therapeutics Reports $9.3 Million Net Loss and IPO Proceeds of $87.5 Million

Aardvark Therapeutics, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company recorded a net loss of $9.3 million, compared to a net loss of $2.2 million for the same period in 2024, marking an increase of $7.1 million. Total operating expenses surged to $10.5 million, up from $2.2 million in the prior year, primarily driven by a substantial rise in research and development costs, which increased from $1.2 million to $7.8 million. This increase reflects the company's intensified focus on advancing its lead product candidate, ARD-101, through clinical trials.

In terms of liquidity, Aardvark's cash, cash equivalents, and short-term investments totaled $151.3 million as of March 31, 2025, a decrease from $61.6 million at the end of 2024. The company completed its initial public offering (IPO) in February 2025, raising approximately $87.5 million in net proceeds from the sale of 6,120,661 shares of common stock at an IPO price of $16.00 per share. This capital infusion is expected to support the company's operations into 2027, although Aardvark anticipates needing additional funding to continue its development efforts.

Strategically, Aardvark has made significant organizational changes, including the conversion of all outstanding shares of convertible preferred stock into common stock upon the completion of its IPO. The company also established a wholly-owned subsidiary, Artisan Therapeutics, Inc., in October 2024, to manage certain assets. Aardvark's employee headcount has increased as it expands its clinical management and regulatory capabilities in preparation for ongoing and future clinical trials.

Operationally, Aardvark is focused on the development of ARD-101, an oral small-molecule agonist targeting Bitter Taste Receptors for the treatment of hyperphagia associated with Prader-Willi Syndrome. The company has initiated a Phase 3 clinical trial for ARD-101 and plans to evaluate it in a Phase 2 trial for hypothalamic obesity. The company has reported that it expects to continue incurring significant operating losses as it advances its clinical programs and expands its workforce.

Looking ahead, Aardvark anticipates that its expenses will increase substantially as it continues to develop ARD-101 and other product candidates. The company has indicated that it will need to raise additional capital through equity offerings, debt financings, or other arrangements to support its long-term business plan. Aardvark's management remains optimistic about its cash position but acknowledges the inherent risks and uncertainties associated with its future funding requirements and operational plans.