ESSA Pharma Reports $6.4 Million Loss, Reviews Strategic Options After Clinical Trial Termination

ESSA Pharma Inc. reported a comprehensive loss of $6.4 million for the six months ended March 31, 2025, a decrease from the $9.0 million loss recorded during the same period in 2024. The company has not generated any revenue, reflecting its ongoing focus on research and development in the pharmaceutical sector, particularly in the treatment of prostate cancer. Total operating expenses for the six months were $17.1 million, down from $18.1 million in the previous year, primarily due to reduced research and development costs following the termination of its clinical trials for masofaniten (EPI-7386).

The company’s research and development expenses for the six months ended March 31, 2025, were $8.96 million, a significant decrease from $11.55 million in the prior year. This reduction is attributed to the winding down of clinical trials and the cessation of preclinical work after the decision to discontinue the development of masofaniten, which was based on interim safety and efficacy data. General and administrative expenses also increased to $8.1 million from $6.5 million, largely due to higher share-based payments and professional fees related to ongoing corporate activities, including a shareholder lawsuit.

As of March 31, 2025, ESSA had cash and cash equivalents of $86.3 million, down from $103.7 million at the end of September 2024. The company’s total assets decreased to $115.4 million from $128.1 million over the same period. The decline in cash reserves is reflective of the company's operational expenditures and the strategic decision to wind down its clinical programs. ESSA's working capital stood at $113.5 million, indicating sufficient liquidity to meet its obligations for the foreseeable future.

In terms of strategic developments, ESSA has initiated a comprehensive review of its strategic options following the termination of its clinical trials. This review may lead to various outcomes, including potential mergers, acquisitions, or the exploration of new product candidates. The company has also withdrawn its Investigational New Drug application and related clinical trial applications, marking a significant shift in its operational focus. The outcome of this strategic review is uncertain, and the company has cautioned that it may incur additional costs during this process.

Looking ahead, ESSA anticipates continued losses as it navigates its strategic options and winds down its clinical and preclinical development programs. The company has indicated that it may need to raise additional funds in the future, which could come from various sources, including strategic collaborations or equity financing. However, there is no assurance that ESSA will successfully secure the necessary funding to continue its operations or achieve profitability in the long term.