Conduit Pharmaceuticals Reports Significant Financial Challenges, Net Loss of $6.5M in Latest Quarter

Conduit Pharmaceuticals Inc., a clinical-stage specialty biopharmaceutical company, reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a drastic decline in cash and cash equivalents, which plummeted to $71,000 from $4.2 million at the end of the previous fiscal year. Total current assets also fell sharply to $1.4 million from $5.7 million, while total assets decreased to $3.0 million from $7.2 million.

The company’s liabilities surged, with total current liabilities increasing to $12.0 million from $1.8 million, leading to a total liabilities figure of $12.1 million compared to $7.7 million at the end of 2023. This resulted in a total stockholders’ deficit of $9.1 million, up from $457,000 previously. The accumulated deficit ballooned to $26.7 million from $11.3 million.

For the three months ended September 30, 2024, Conduit reported operating expenses of $5.8 million, a significant increase from $430,000 in the same period of 2023. This led to an operating loss of $5.8 million, compared to a loss of $430,000 in the prior year. The net loss for the quarter was $6.5 million, a stark contrast to a net income of $2.6 million in Q3 2023. For the nine-month period, the net loss reached $15.4 million, compared to $780,000 in the same period last year.

The increase in operating expenses was primarily driven by research and development costs associated with a licensing agreement with AstraZeneca, which included an upfront payment of $1.5 million and share issuances totaling $1.6 million. General and administrative expenses also surged, reflecting higher salaries and professional fees.

Strategically, the company completed a merger on September 22, 2023, with Murphy Canyon Acquisition Corp, which resulted in a name change and a new trading symbol on the Nasdaq. Following the merger, Conduit has been actively seeking additional financing to address liquidity concerns, including a recent sales agreement to offer shares with an aggregate price of up to $3.6 million.

The company has faced compliance issues with Nasdaq regarding its stock price and market value, with deadlines set for February 2025 to regain compliance. Management has indicated that additional financing will be necessary to sustain operations and fund ongoing research and development efforts.