Daré Bioscience Reports 173% Revenue Increase in Q1 2025, Faces Continued Losses

Daré Bioscience, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $25,427, a significant increase of 173% compared to $9,302 in the same period last year. The rise in revenue is attributed to royalty income from its license agreement with Organon for the commercialization of XACIATO, a vaginal gel for bacterial vaginosis. However, the company continues to face substantial losses, with a net loss of $4.4 million for the quarter, an improvement from the $6.8 million loss reported in the first quarter of 2024.

Operating expenses for the quarter decreased by 24% to $4.6 million, down from $6.0 million in the prior year. This reduction was primarily driven by lower research and development costs, which fell by 31% to $2.3 million, and a decrease in general and administrative expenses, which declined by 14% to $2.3 million. The company noted that the decrease in R&D expenses was largely due to reduced manufacturing costs associated with its Ovaprene program and lower development costs for Sildenafil Cream.

In terms of strategic developments, Daré announced an expansion of its business strategy to include Section 503B compounding, which allows the company to bring certain proprietary formulations to market more quickly while continuing to pursue FDA approvals. This dual-path approach aims to enhance revenue generation from existing assets. The company is also actively pursuing additional capital to fund its operations, as it reported an accumulated deficit of approximately $179.7 million and a working capital deficit of $9.4 million as of March 31, 2025.

Operationally, Daré's employee headcount remains stable, and the company is focused on advancing its product candidates, including Ovaprene and Sildenafil Cream, through clinical trials. The company is currently in discussions with potential third-party sources for additional capital and is exploring various financing options, including equity sales and collaborations. The outlook remains cautious, as the company anticipates needing substantial additional capital to continue its operations and execute its business strategy effectively.

Looking ahead, Daré is targeting to begin recording revenue from its proprietary formulations under Section 503B by late 2025, although it does not expect the revenue to be material during that year. The company is also working to regain compliance with Nasdaq listing requirements, having received an extension until August 12, 2025, to demonstrate compliance with either the stockholders’ equity or minimum market value rules. The success of these initiatives will be critical for the company's future financial stability and growth.