Connect Biopharma Reports $12.9 Million Net Loss in Q2 2025 Amid Increased R&D Spending

Connect Biopharma Holdings Limited reported significant financial challenges in its latest 10-Q filing for the second quarter of 2025. The company recorded a net loss of $12.9 million, or $0.23 per share, for the three months ended June 30, 2025, compared to a net income of $14.8 million, or $0.27 per share, for the same period in 2024. For the six months ended June 30, 2025, the net loss deepened to $23.2 million, or $0.42 per share, compared to a profit of $6.2 million, or $0.11 per share, in the prior year. Total revenues from license and collaboration agreements plummeted to $48,000 in both the three and six months ended June 30, 2025, down from $24.1 million in the same periods of 2024, primarily due to the absence of milestone payments and the recognition of an upfront license fee in the previous year.

Operating expenses increased to $13.5 million for the second quarter of 2025, up from $10.5 million in the same quarter of 2024. This rise was driven by a notable increase in research and development expenses, which reached $8.8 million, compared to $5.3 million in the prior year. The increase in R&D spending was attributed to the initiation of two Phase 2 clinical trials for rademikibart, the company's lead product candidate targeting asthma and chronic obstructive pulmonary disease (COPD). General and administrative expenses saw a slight decrease to $4.7 million from $5.1 million, reflecting reduced share-based compensation costs.

In terms of operational developments, Connect Biopharma announced plans to terminate its American Depositary Receipt (ADR) program, with the transition to direct listing of its ordinary shares on Nasdaq expected to occur around September 2, 2025. This strategic move aims to streamline operations and enhance shareholder engagement. Additionally, the company expanded its Board of Directors, appointing James A. Schoeneck, a seasoned biotech executive, to bolster its leadership team.

As of June 30, 2025, Connect Biopharma reported cash, cash equivalents, and short-term investments totaling $71.8 million, which management believes will be sufficient to meet its operational needs for at least the next year. The company is also eligible for up to $110 million in milestone payments from its collaboration with Simcere Pharmaceutical Co., Ltd. for the development of rademikibart in Greater China, contingent upon the successful achievement of specific regulatory and commercial milestones. Looking ahead, Connect Biopharma anticipates reporting topline data from its ongoing Phase 2 studies in the first half of 2026, which could significantly impact its future financial performance and market position.