Avenue Therapeutics Reports Net Income of $329,000 in Q2 2025, Significant Financial Improvement

Avenue Therapeutics, Inc. reported a significant improvement in its financial performance for the second quarter of 2025, with net income of $329,000 compared to a net loss of $2.7 million in the same period of 2024. The company generated $1.4 million in revenue during the three months ended June 30, 2025, attributed to the termination of a license agreement with AnnJi Pharmaceutical Co. Ltd. In contrast, no revenue was recorded in the prior year. For the first half of 2025, Avenue's net loss narrowed to $1.5 million from $7.1 million in the same period of 2024, reflecting a 78% reduction in losses.

Operating expenses also saw a notable decline, with total expenses for the second quarter dropping to $1.1 million from $2.8 million year-over-year. Research and development costs fell sharply by 86% to $192,000, primarily due to the cessation of costs associated with the AJ201 product candidate, which was sold back to AnnJi. General and administrative expenses decreased by 37% to $915,000, driven by reduced legal fees and stock issuance costs.

Avenue's balance sheet showed total assets of $4.2 million as of June 30, 2025, up from $2.7 million at the end of 2024. The company had cash and cash equivalents of $3.3 million, an increase from $2.6 million at the end of the previous fiscal year. Total liabilities also rose to $1.3 million from $816,000, primarily due to increased accounts payable and accrued expenses. The company’s accumulated deficit reached $104.1 million, reflecting ongoing challenges in achieving profitability.

Strategically, Avenue has undergone significant changes, including the termination of the AnnJi License Agreement, which allowed the company to recognize revenue from the transfer of rights related to AJ201. The company is now focusing on its remaining product candidates, including intravenous tramadol and BAER-101, while exploring potential partnerships or licensing arrangements for its Baergic subsidiary. Avenue's common stock was delisted from Nasdaq in March 2025 and is now traded on the over-the-counter market, which may impact its ability to raise additional capital.

Looking ahead, Avenue Therapeutics anticipates continued operating losses as it seeks to advance its product candidates through clinical development and regulatory approval. The company plans to secure additional funding through equity or debt offerings, although it acknowledges the uncertainty surrounding the availability of such financing. The management remains committed to exploring strategic alternatives to enhance its capital structure and support its operational goals.