Annovis Bio Reports $5.5 Million Net Loss in Q1 2025, Cash Balance Increases to $22.2 Million

Annovis Bio, Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $5.5 million, a significant increase from the $1.1 million loss recorded in the same period last year. The company's operating expenses decreased to $6.3 million from $7.8 million year-over-year, primarily due to reduced research and development costs associated with the completion of previous clinical trials. Research and development expenses fell to $5.0 million from $6.5 million, reflecting the conclusion of close-out activities for earlier studies. General and administrative expenses remained relatively stable at approximately $1.3 million.

The company experienced a notable increase in cash and cash equivalents, which rose to $22.2 million as of March 31, 2025, compared to $10.6 million at the end of 2024. This increase was largely attributed to a successful underwritten public offering in February 2025, which generated net proceeds of $19.3 million. Additionally, Annovis reported interest income of $0.2 million, up from $0.04 million in the prior year, driven by higher cash balances. However, the change in fair value of warrants significantly decreased to $0.6 million from $6.7 million, reflecting fewer outstanding warrants and fluctuations in stock price.

Strategically, Annovis has made significant advancements in its clinical development pipeline. The company is focused on its lead product candidate, Buntanetap, which targets neurodegenerative diseases such as Alzheimer’s and Parkinson’s. Following the completion of its Phase 3 study in Parkinson's disease in December 2023, the company plans to discuss the results with the FDA in June 2025. Furthermore, Annovis initiated a pivotal Phase 3 trial for Alzheimer’s disease in February 2025, which aims to confirm the drug's efficacy and potentially support a New Drug Application filing.

Operationally, Annovis has not generated any revenue since its inception in 2008 and continues to rely on equity financing to fund its operations. The company reported an accumulated deficit of $140.4 million as of March 31, 2025. Management has indicated that the current cash balance may not be sufficient to sustain operations for the next 12 months, necessitating additional capital raises. The company is exploring various financing options, including public or private equity offerings and potential collaborations, to support its ongoing clinical trials and operational needs.

Looking ahead, Annovis remains focused on advancing its clinical programs while managing its financial resources carefully. The company anticipates continued operating losses as it invests in the development of Buntanetap and seeks regulatory approvals. The successful execution of its clinical trials and the ability to secure additional funding will be critical for the company's future growth and sustainability in the competitive biopharmaceutical landscape.