Entero Therapeutics Reports $1.26 Million Net Loss and Significant Expense Reductions in Q1 2025

Entero Therapeutics, Inc. reported a net loss of approximately $1.26 million for the three months ended March 31, 2025, a significant decrease from a net income of $5.57 million during the same period in 2024. The company's total operating expenses for the first quarter of 2025 were approximately $821,386, down 91% from $9.1 million in the prior year. This reduction was primarily driven by a substantial decrease in general and administrative expenses, which fell from $8.54 million to $805,559, largely due to the absence of non-cash expenses related to the IMGX merger and reduced legal and consulting fees.

In terms of financial position, Entero's cash and cash equivalents decreased to approximately $66,000 as of March 31, 2025, compared to $163,476 at the end of 2024. The company has an accumulated deficit of approximately $203.6 million. Entero's liabilities increased to $28.74 million, up from $27.61 million at the end of the previous fiscal year, primarily due to the addition of a $700,000 revolving line of credit. The company has classified certain assets and liabilities related to its subsidiary, ImmunogenX, as held for sale, reflecting its strategic decision to dispose of these assets.

Strategically, Entero has undergone significant changes, including the termination of its license agreement with Sanofi for the Capeserod program and the decision to discontinue its development of the Latiglutenase and Niclosamide programs. The company is focusing on the development of its lead product candidate, Adrulipase, which is designed to treat exocrine pancreatic insufficiency in patients with cystic fibrosis and chronic pancreatitis. Entero is also exploring various strategic alternatives, including potential mergers or acquisitions, to enhance its product pipeline.

Operationally, Entero's research and development expenses were significantly reduced to $15,827 in the first quarter of 2025, down from $554,662 in the same period last year. This reflects the company's shift in focus and resource allocation following the merger with ImmunogenX. The company has not generated any revenue to date and continues to rely on external funding to support its operations. Entero's management has expressed concerns about its ability to continue as a going concern, emphasizing the need for additional capital to fund ongoing development and operational costs.

Looking ahead, Entero is actively pursuing funding opportunities to support its development plans, particularly for Adrulipase. The company is also monitoring market conditions and exploring potential partnerships to enhance its financial stability. Entero's ability to regain compliance with Nasdaq listing requirements remains a critical focus, as it seeks to maintain its public listing and secure the necessary capital for future growth.