Semnur Pharmaceuticals, Inc., formerly known as Denali Capital Acquisition Corp., reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2025. The company, which focuses on developing non-opioid pain management products, recorded a net loss of $152.6 million for the third quarter, a substantial increase from a loss of $1.3 million in the same period last year. For the nine months ended September 30, 2025, the net loss totaled $154.3 million, compared to $3.9 million for the same period in 2024. The increase in losses is attributed primarily to heightened research and development expenses and substantial general and administrative costs associated with the recent business combination.
The company’s total operating expenses for the third quarter reached $152.6 million, a dramatic rise from $1.3 million in the prior year. This surge was largely driven by $140 million in consulting expenses related to shares issued to consultants at the time of the business combination, as well as $9.9 million in deferred offering costs that were expensed upon closing. Research and development expenses also increased significantly, totaling $1.1 million for the quarter, up from $233,000 in the previous year, reflecting intensified activities related to the development of its lead product candidate, SP-102.
In terms of operational metrics, Semnur's cash and cash equivalents stood at $0.1 million as of September 30, 2025, a decrease from $12,000 at the end of 2024. The company reported total liabilities of $15.4 million, a decrease from $49.5 million at the end of the previous fiscal year, primarily due to the conversion of related party loans into equity as part of the business combination. The company’s accumulated deficit has grown to $269.6 million, indicating the financial challenges it faces as it continues to invest heavily in its product development pipeline.
Strategically, Semnur completed a business combination with Legacy Semnur on September 22, 2025, which involved a reverse recapitalization and a name change. This merger has positioned Semnur to leverage Legacy Semnur's existing product development efforts, particularly for SP-102, which is designed to treat lumbosacral radicular pain. The company has initiated a second Phase 3 study for SP-102, which has received fast track designation from the FDA, highlighting its potential significance in the market for non-opioid pain management solutions.
Looking ahead, Semnur anticipates continued operating losses as it ramps up its clinical development efforts. The company estimates its operating expenses will be approximately $21 million over the next twelve months, including $10 million for clinical work. To support its operations, Semnur is exploring various financing options, including potential equity offerings and collaborations. However, the company has expressed substantial doubt about its ability to continue as a going concern without securing additional funding, given its current cash position and ongoing financial obligations.
About Denali Capital Acquisition Corp.
A blank check company incorporated in the Cayman Islands, Denali Capital Acquisition Corp. aims to identify and complete mergers or acquisitions with businesses in technology, hospitality, or consumer services. It provides a streamlined route for target companies to go public via business combination, leveraging its industry expertise, broad network, and strategic criteria to generate value and access capital markets. The company operates as a shell entity until executing its initial business combination.
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