Candel Therapeutics Reports $7.4 Million Net Income in Q1 2025, Significant Turnaround from Prior Year

Candel Therapeutics, Inc. reported a net income of $7.4 million for the first quarter of 2025, a significant turnaround from a net loss of $8.2 million in the same period last year. This improvement is attributed to a notable increase in interest income and a substantial decrease in the fair value of warrant liabilities. Total operating expenses for the quarter rose to $8.1 million, up from $7.9 million in the prior year, primarily driven by increased general and administrative costs, which rose by $314,000 to $4.1 million. Research and development expenses slightly decreased to $4.0 million from $4.1 million, reflecting a reduction in employee-related costs.

Candel's total assets decreased to $95.9 million as of March 31, 2025, down from $106.9 million at the end of 2024. The decline in assets was primarily due to a reduction in cash and cash equivalents, which fell to $92.2 million from $102.7 million. The company’s liabilities also decreased significantly, from $40.5 million to $21.2 million, largely due to a reduction in accrued expenses and the fair value of warrant liabilities. The accumulated deficit as of March 31, 2025, stood at $184.8 million, down from $192.2 million at the end of 2024.

Strategically, Candel Therapeutics has been advancing its clinical programs, particularly its lead product candidate, CAN-2409, which is currently in pivotal trials for prostate cancer. The company reported positive topline data from a phase 3 trial, indicating a 30% reduction in the risk of prostate cancer recurrence or death compared to the control group. Additionally, Candel is exploring the use of CAN-2409 in non-small cell lung cancer and pancreatic cancer, with ongoing trials showing promising results. The company has also engaged in collaborations to enhance its research capabilities, including a partnership with the University of Pennsylvania to study novel viral immunotherapies.

Looking ahead, Candel anticipates continued operating losses as it invests in the development of its product candidates. The company expects its existing cash reserves will fund operations into the first quarter of 2027, but it will require additional capital to support ongoing clinical trials and potential commercialization efforts. Candel has raised approximately $271.5 million since its inception, primarily through equity and debt financing, and plans to pursue further funding through various means, including public or private equity offerings and collaborations.