Eledon Pharmaceuticals Reports $6.5 Million Net Loss in Q1 2025, Focuses on Tegoprubart Development

Eledon Pharmaceuticals, Inc. reported a net loss of $6.5 million for the first quarter of 2025, a significant improvement compared to a net loss of $23.6 million during the same period in 2024. The company's total operating expenses increased to $18.0 million from $10.9 million year-over-year, primarily driven by a rise in research and development costs associated with its lead drug candidate, tegoprubart, which is in clinical trials for kidney transplantation and amyotrophic lateral sclerosis (ALS). Research and development expenses rose to $13.5 million, up from $7.4 million, reflecting increased activities in ongoing clinical trials.

Eledon's financial position as of March 31, 2025, showed cash and cash equivalents of $8.5 million, down from $20.5 million at the end of 2024. The company also held short-term investments totaling $116.4 million, resulting in total current assets of $127.7 million. The accumulated deficit increased to $362.1 million, indicating the ongoing financial challenges faced by the company as it continues to invest heavily in its clinical programs without generating revenue from product sales.

In terms of strategic developments, Eledon has focused its resources on the clinical development of tegoprubart, particularly for kidney transplantation, while discontinuing its islet cell transplantation and IgA nephropathy programs. The company has received regulatory approvals for a Phase 1b clinical trial and a Phase 2 study, with the first subject in the Phase 1b trial dosed in July 2022. Eledon is also collaborating with eGenesis, Inc. for preclinical studies in xenotransplantation, further expanding its research scope.

Operationally, Eledon has seen a notable increase in its employee headcount, which now stands at 77, up from 30 in the previous year. This growth is aligned with the company's strategy to enhance its clinical development capabilities. The company has also engaged in various financing activities, including private placements and an underwritten offering, to support its ongoing operations and clinical trials. However, Eledon acknowledges the need for additional funding to continue its development efforts, particularly for the ALS program, which is currently on hold pending financing.

Looking ahead, Eledon anticipates that its existing cash and investments will be sufficient to fund operations for at least the next 12 months. However, the company remains cautious about its future financial needs, emphasizing the potential for significant operating losses and the necessity of raising additional capital to support its clinical development and commercialization efforts. The company’s ability to secure funding will be critical to its success in advancing its product candidates and achieving regulatory approvals.