Aligos Therapeutics Reports $43.1 Million Net Income in Q1 2025, Driven by Fair Value Gain

Aligos Therapeutics, Inc. reported a significant financial turnaround in its latest quarterly results, with a net income of $43.1 million for the three months ended March 31, 2025, compared to a net loss of $34.9 million during the same period in 2024. This improvement was primarily driven by a $61.5 million gain from the change in fair value of the 2023 common warrants. Total revenue from customers reached $311,000, a decrease from $383,000 in the prior year, while the company did not recognize any revenue from collaborations, down from $292,000 in the previous year due to the termination of a collaboration agreement.

Operating expenses for the first quarter of 2025 decreased by 15% to $19.6 million, down from $23.0 million in the same quarter of 2024. Research and development expenses fell to $14.5 million from $16.4 million, reflecting reduced clinical study costs and a decrease in employee-related expenses. General and administrative expenses also decreased by 24% to $5.1 million, attributed to lower legal and intellectual property costs. The company’s accumulated deficit as of March 31, 2025, stood at $574.9 million, a slight improvement from $618.0 million at the end of 2024.

In terms of strategic developments, Aligos completed a private investment in public equity (PIPE) offering in February 2025, raising approximately $105 million. This financing involved the issuance of over 2.1 million shares of common stock and warrants, which bolstered the company's cash position to approximately $137.9 million as of the end of the first quarter. The company continues to focus on advancing its clinical pipeline, which includes drug candidates targeting chronic hepatitis B virus (HBV) infection, metabolic dysfunction-associated steatohepatitis (MASH), and coronaviruses.

Operationally, Aligos is actively engaged in clinical trials for its lead drug candidates, including ALG-000184 for chronic HBV infection, which has shown promising results in early studies. The company is also preparing for a Phase 2 study of ALG-000184, expected to begin in mid-2025. The company’s workforce has expanded, with a notable increase in employee headcount to support ongoing research and development activities. Aligos anticipates continued investment in its clinical programs, which may lead to increased operating expenses in the future.

Looking ahead, Aligos expects to continue incurring significant losses as it advances its drug candidates through clinical trials. The company plans to finance its operations through a combination of equity offerings, collaborations, and strategic partnerships. Management believes that the existing cash reserves will support operations for at least the next 12 months, although they acknowledge the potential need for additional funding to meet future operational requirements.