Connect Biopharma Reports $10.3 Million Net Loss for Q1 2025, Advances Clinical Programs

Connect Biopharma Holdings Limited reported a net loss of $10.3 million, or $0.19 per share, for the three months ended March 31, 2025, compared to a net loss of $8.7 million, or $0.16 per share, for the same period in 2024. The company's total operating expenses decreased to $11.4 million from $12.6 million year-over-year, primarily due to a reduction in research and development expenses, which fell to $6.6 million from $8.7 million. This decline was attributed to decreased costs associated with the development of its lead product candidate, rademikibart. General and administrative expenses increased to $4.8 million, reflecting higher professional fees and personnel costs as the company continues to transition towards a more U.S.-centric operational model.

In terms of other income, Connect Biopharma reported $1.2 million for the first quarter of 2025, down from $4.0 million in the prior year, largely due to reduced government subsidies and interest income. The company’s cash, cash equivalents, and short-term investments totaled $84.0 million as of March 31, 2025, which management believes will be sufficient to meet anticipated cash requirements for at least one year. The increase in net cash used in operating activities to $10.0 million from $0.6 million in the previous year was primarily driven by changes in operating assets and liabilities.

Strategically, Connect Biopharma has made significant advancements in its clinical development programs. In March 2025, the company published positive data from a Phase 2 trial of rademikibart in patients with uncontrolled asthma, highlighting its potential as a novel treatment option. Following this, in April 2025, the company received favorable feedback from the FDA regarding the design of two parallel Phase 2 trials for rademikibart in acute exacerbations of asthma and chronic obstructive pulmonary disease (COPD). The first patient was enrolled in these trials in May 2025, marking a critical step in the company's clinical development efforts.

The company also entered into a licensing agreement with Simcere Pharmaceutical Co., Ltd. in November 2023, granting exclusive rights to develop and commercialize rademikibart in Greater China. This agreement includes an upfront payment of approximately $21 million and potential milestone payments totaling up to $123 million, contingent on the achievement of specific development and regulatory milestones. As of March 31, 2025, Connect Biopharma had no revenue recognized under this agreement, as the performance obligations related to the license were still being fulfilled.

Looking ahead, Connect Biopharma remains focused on advancing its clinical programs and expanding its market presence. The company is navigating a challenging economic environment characterized by high inflation and potential recession risks, which could impact its operations and capital requirements. However, management is optimistic about the potential of rademikibart and its strategic partnerships to drive future growth and value creation.