ESSA Pharma Inc. reported a comprehensive loss of $4,003,274 for the nine months ending June 30, 2025, a decrease from the $7,233,747 loss recorded during the same period in 2024. The company's financial performance reflects a significant reduction in research and development expenses, which totaled $8,427,148 for the nine months ended June 30, 2025, compared to $17,018,874 in the prior year. This decline is attributed to the termination of clinical trials for its lead candidate, masofaniten (EPI-7386), which was announced in October 2024. General and administrative expenses also increased to $13,536,542 from $9,707,565, primarily due to higher professional fees and director compensation.
As of June 30, 2025, ESSA's cash and cash equivalents stood at $85,952,587, down from $103,709,537 at the end of the previous fiscal year. The company’s total assets decreased to $110,502,100 from $128,112,003, while total liabilities dropped to $1,599,955 from $3,506,233. The working capital was reported at $108,902,145, indicating that the company has sufficient liquidity to meet its obligations in the near term.
In terms of strategic developments, ESSA announced a definitive agreement on July 13, 2025, for a business combination with XenoTherapeutics, Inc. This transaction is expected to close in the second half of 2025, subject to customary closing conditions, including shareholder approval. If the transaction does not proceed, ESSA plans to seek shareholder approval for a voluntary liquidation and dissolution. The company has also indicated that it may incur significant costs related to the strategic review process and the wind-down of its clinical programs.
Operationally, ESSA has ceased all clinical trials and preclinical development programs, focusing instead on the completion of the transaction with XenoTherapeutics. The company has not generated any revenue and has incurred losses since its inception. The outlook remains uncertain, with ESSA indicating that it expects to continue incurring losses as it navigates its strategic options and the potential liquidation process.
Overall, ESSA Pharma's financial results reflect a company in transition, with a focus on concluding its existing obligations while exploring new strategic directions. The outcome of the proposed transaction with XenoTherapeutics will be pivotal for the company's future operations and financial health.
About ESSA Pharma Inc.
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