Annexon Reports $54.4 Million Net Loss in Q1 2025, Increases R&D Spending

Annexon, Inc. reported significant financial results for the first quarter of 2025, revealing a net loss of $54.4 million, compared to a net loss of $25.2 million for the same period in 2024. This represents an increase in net loss of 116%. The company's total operating expenses surged to $57.4 million, a 101% increase from $28.6 million in the prior year, primarily driven by a 130% rise in research and development expenses, which reached $48.2 million. The increase in R&D expenses was largely attributed to heightened contract manufacturing costs and personnel-related expenses as the company prepares for regulatory submissions and clinical trials.

In terms of liquidity, Annexon reported cash and cash equivalents of $97.1 million as of March 31, 2025, up from $49.5 million at the end of 2024. The company also held short-term investments totaling $166.6 million, down from $262.5 million at the end of the previous year. The total current assets decreased to $268.2 million from $316.5 million, while total liabilities increased slightly to $59.2 million from $57.0 million. The accumulated deficit grew to $765.1 million, reflecting the ongoing investment in R&D and operational activities.

Strategically, Annexon is advancing its clinical pipeline, focusing on three key programs: tanruprubart for Guillain-Barré Syndrome, ANX007 for Geographic Atrophy, and ANX1502 for autoimmune indications. The company is preparing to initiate the open-label tanruprubart FORWARD study in the second quarter of 2025, which aims to broaden the understanding of the drug's effects in Western populations. Additionally, the Phase 3 ARCHER II trial for ANX007 is ongoing, with enrollment expected to complete by the third quarter of 2025.

Operationally, the company has seen a significant increase in its workforce, contributing to the rise in general and administrative expenses, which totaled $9.2 million for the quarter, up from $7.6 million in the prior year. The increase in headcount is part of Annexon's strategy to support its expanding clinical programs and prepare for potential commercialization. The company continues to rely on equity financing to fund its operations, with approximately $263.7 million in cash and investments available to support its activities into the second half of 2026.

Looking ahead, Annexon anticipates continued losses as it invests in the development of its product candidates and prepares for regulatory submissions. The company acknowledges the need for additional funding to sustain its operations and achieve its strategic goals, emphasizing the importance of securing favorable financing terms to support its ongoing research and development efforts.