CervoMed Reports $4.9 Million Net Loss in Q1 2025, Increased R&D Expenses

CervoMed Inc., formerly known as Diffusion Pharmaceuticals Inc., reported its financial results for the first quarter of 2025, revealing a net loss of $4.9 million, a significant increase from the $2.5 million loss recorded in the same period last year. The company's grant revenue decreased to $1.9 million from $2.3 million, attributed to the transition from the Initial Phase to the Extension Phase of its RewinD-LB Trial, which is focused on treating dementia with Lewy bodies (DLB). Total operating expenses rose to $7.2 million, up 46% from $4.9 million in the prior year, primarily driven by increased research and development costs.

The company’s research and development expenses surged by 72% to $4.8 million, reflecting higher costs associated with clinical trials and increased headcount. General and administrative expenses also rose by 12% to $2.4 million, largely due to personnel-related costs. CervoMed's accumulated deficit as of March 31, 2025, stood at approximately $75.6 million, indicating ongoing financial challenges as the company continues to invest heavily in its clinical programs without generating product revenue.

CervoMed's strategic focus remains on its lead drug candidate, neflamapimod, which is currently undergoing a Phase 2b clinical trial funded primarily by a $21.3 million grant from the National Institute on Aging (NIA). The company has reported promising results from the trial, including statistically significant improvements in cognitive measures compared to placebo. In addition to DLB, CervoMed is exploring neflamapimod's potential applications in other neurological disorders, including frontotemporal dementia and recovery from ischemic stroke.

As of March 31, 2025, CervoMed had cash and cash equivalents totaling approximately $10.5 million, alongside marketable securities valued at $24.7 million. The company anticipates that its existing resources, combined with remaining funds from the NIA grant, will support its operations for at least the next twelve months. However, CervoMed acknowledges the need for additional financing to continue advancing its clinical programs and to cover operational costs. The company plans to pursue various funding avenues, including equity offerings and potential collaborations, to secure the necessary capital for its ongoing development efforts.