BioAtla Reports $18.7 Million Net Loss in Q2 2025, Sees Decrease in Operating Expenses

BioAtla, Inc. reported its financial results for the second quarter of 2025, revealing a net loss of $18.7 million, a decrease from the $21.1 million loss recorded in the same period of 2024. For the first half of 2025, the company reported a net loss of $34.0 million, down from $44.3 million in the prior year. The reduction in losses is attributed to a decrease in operating expenses, which totaled $18.6 million for the quarter, compared to $22.0 million in the previous year. The company’s accumulated deficit as of June 30, 2025, stands at $520.1 million, reflecting ongoing challenges in achieving profitability.

The company’s total operating expenses for the first half of 2025 were $36.3 million, down from $46.4 million in the same period of 2024. This decline is primarily due to reduced research and development costs, which fell to $26.0 million from $35.1 million year-over-year. The decrease in R&D expenses is linked to a strategic focus on completing Phase 2 clinical trials for its lead product candidates, including mecbotamab vedotin and ozuriftamab vedotin. General and administrative expenses also decreased, reflecting cost-cutting measures implemented during a corporate restructuring that included a 30% workforce reduction.

In terms of cash flow, BioAtla reported a net cash outflow from operating activities of $30.4 million for the first half of 2025, compared to $50.0 million in the same period of 2024. The company ended the quarter with cash and cash equivalents of approximately $18.2 million, a significant decrease from $49.0 million at the end of 2024. This decline raises concerns about the company’s liquidity, as management indicated that current cash reserves may not be sufficient to fund operations for the next twelve months, leading to substantial doubt about its ability to continue as a going concern.

Strategically, BioAtla has made significant moves to enhance its operational efficiency, including a reduction in its leased office space by nearly half in June 2025. The company has also entered into a licensing agreement with Context Therapeutics for its bispecific antibody BA3362, which could provide future milestone and royalty payments, although no revenue has been recognized from this agreement as of the reporting date. The company continues to focus on its proprietary platform for developing conditionally active biologics (CABs) aimed at treating solid tumors, with ongoing clinical trials for several candidates.

Looking ahead, BioAtla anticipates that its research and development expenses may decrease further as it completes its current clinical trials. However, the company acknowledges that it will require substantial additional capital to fund future development and commercialization efforts. Management plans to explore various funding options, including public or private equity offerings and collaborations, to support its operations and mitigate the risks associated with its financial outlook.