Edesa Biotech Reports $3.2 Million Net Loss and Increased Cash Reserves for Six Months Ending March 31, 2025

Edesa Biotech, Inc. has reported its financial results for the six months ending March 31, 2025, revealing a net loss of $3.2 million, or $0.74 per common share, compared to a net loss of $3.5 million, or $1.12 per common share, for the same period in the previous year. The company’s total operating expenses decreased to $3.5 million from $4.1 million, primarily due to a reduction in research and development (R&D) costs, which fell to $1.5 million from $1.9 million. This decline was attributed to decreased external research expenses related to the EB05 program, partially offset by increased costs associated with the EB06 program as preparations for a Phase 2 clinical study advance.

In terms of revenue, Edesa reported grant income of $0.4 million for both the six-month periods ending March 31, 2025, and 2024, indicating stability in this area despite fluctuations in other income sources. The company’s cash and cash equivalents at the end of the reporting period stood at $13.9 million, a significant increase from $1.0 million at the beginning of the period. This improvement was largely driven by financing activities, which generated $16.8 million, including $15.0 million from the sale of common and Series B-1 preferred shares.

Strategically, Edesa has made notable advancements, including the issuance of Series A-1 and Series B-1 preferred shares, which have bolstered its capital structure. The Series B-1 offering, completed on February 12, 2025, involved the sale of 834 preferred shares and 3,468,746 common shares, generating approximately $15.0 million in gross proceeds. Additionally, the company has entered into a multi-year contribution agreement with the Canadian government’s Strategic Innovation Fund, which could provide up to C$23 million in funding for its clinical studies, further supporting its operational and developmental goals.

Operationally, Edesa is focused on its clinical pipeline, which includes the EB05 and EB06 drug candidates targeting inflammatory and immune-related diseases. The company is preparing for a Phase 2 clinical study of EB06, having received regulatory approval from Health Canada, and is in discussions with the U.S. FDA regarding the same. The company’s employee headcount remains stable, reflecting its commitment to maintaining operational efficiency while advancing its clinical programs.

Looking ahead, Edesa Biotech anticipates continued operating losses as it invests in the development of its product candidates. The company plans to seek additional financing through equity sales, government grants, and potential collaborations to support its ongoing operations and clinical trials. Management has indicated that while they have sufficient cash to fund operations through fiscal 2026, they will need to secure further funding to sustain long-term growth and development initiatives.