BeyondSpring Reports $1.2 Million Net Income Turnaround, Focuses on R&D Investments

BeyondSpring Inc. reported a consolidated net income of $1.2 million for the three months ended March 31, 2025, a significant turnaround from a net loss of $3.3 million during the same period in 2024. This positive shift was primarily attributed to a $7.0 million gain from the sale of preferred shares of its subsidiary, SEED Therapeutics Inc. The company did not generate any revenue from product sales during the quarter, consistent with its ongoing focus on research and development in the biopharmaceutical sector.

Operating expenses for the first quarter of 2025 totaled $2.6 million, up from $2.1 million in the prior year, reflecting increased investments in research and development as well as general administrative costs. Research and development expenses rose to $0.9 million, a 21% increase compared to $0.7 million in the previous year, driven by higher personnel costs and expenses related to Plinabulin combination therapy research. General and administrative expenses also increased by 30% to $1.7 million, primarily due to higher professional service costs.

In terms of operational developments, BeyondSpring has been actively pursuing strategic partnerships and collaborations. The company has entered into agreements to sell portions of its Series A-1 Preferred Shares of SEED for approximately $35.4 million, with the first closing completed in February 2025, generating $7.4 million in cash. As of March 31, 2025, BeyondSpring retained a 40.12% ownership stake in SEED, which is expected to decrease to 28.02% and 14.37% following the second and third closings, respectively.

The company’s total assets increased to $37.1 million as of March 31, 2025, up from $34.3 million at the end of 2024. This growth was supported by a rise in cash and cash equivalents, which reached $6.5 million, compared to $2.9 million at the end of the previous fiscal year. BeyondSpring's accumulated deficit decreased slightly to $402.9 million, down from $407.4 million, indicating a gradual improvement in its financial position.

Looking ahead, BeyondSpring anticipates continued investment in its clinical development programs, particularly for Plinabulin, which is being studied in various cancer indications. The company plans to file a New Drug Application (NDA) with the National Medical Products Administration in China and is exploring additional strategic options to support its business model. However, it acknowledges the need for substantial additional funding to support ongoing operations and development activities, particularly in light of the competitive and regulatory challenges inherent in the biopharmaceutical industry.