Conduit Pharmaceuticals Reports $5.1 Million Net Loss and Expands R&D Efforts in Q1 2025

Conduit Pharmaceuticals Inc. reported a net loss of $5.1 million for the first quarter of 2025, a significant increase from the $3.6 million loss recorded in the same period of 2024. The company's total operating expenses rose to $4.0 million, up from $3.0 million year-over-year, primarily driven by a substantial increase in research and development (R&D) expenses, which surged to $1.3 million from $128,000. This increase was largely attributed to costs associated with the Sarborg Service Agreement and the Charles River Master Services Agreement, reflecting the company's commitment to advancing its clinical assets.

In terms of financial position, Conduit reported total assets of $7.3 million as of March 31, 2025, compared to $4.2 million at the end of 2024. The company’s cash and cash equivalents increased to $2.1 million from $554,000, bolstered by proceeds from the issuance of common stock under its at-the-market (ATM) program, which generated $8.1 million during the quarter. The total liabilities decreased significantly to $4.6 million from $11.0 million, primarily due to the repayment of convertible promissory notes and other debts.

Strategically, Conduit has been active in expanding its operational capabilities and partnerships. The company entered into a significant license agreement with AstraZeneca for the development of certain clinical assets, which positions it to leverage AstraZeneca's prior research and development efforts. Additionally, Conduit has engaged Sarborg Limited to provide advanced AI and cybernetics technology services aimed at enhancing its drug development processes. This partnership is expected to streamline operations and improve decision-making in clinical trials.

Operationally, Conduit has made strides in its workforce, with a notable increase in employee headcount as it ramps up its R&D efforts. The company is also focused on geographic expansion and aims to enhance its market share in the pharmaceutical sector by developing innovative treatments for unmet medical needs. However, management has expressed concerns regarding liquidity, indicating that there is substantial doubt about the company's ability to continue as a going concern for at least the next 12 months without additional funding. The company plans to pursue further capital through equity or debt financing to support its ongoing operations and development initiatives.