Exicure Reports $3M Net Income Turnaround Amid Increased Operating Expenses and Acquisition of GPCR USA

Exicure, Inc. reported a significant financial turnaround in its latest quarterly results, with a net income of $3.0 million for the three months ended March 31, 2025, compared to a net loss of $829,000 during the same period in 2024. The company did not generate any revenue in the first quarter of 2025, a stark contrast to the $500,000 reported in the previous year. This shift in financial performance is attributed to a combination of increased operating expenses and a notable gain from the early termination of a lease, which contributed $6 million to the company's income.

Operating expenses for Exicure increased to $2.9 million in the first quarter of 2025, up from $1.3 million in the prior year. This rise was primarily driven by the company's renewed focus on research and development, which accounted for $808,000 in expenses, a new line item following the acquisition of GPCR USA. General and administrative expenses also rose significantly, reflecting the costs associated with the acquisition and increased professional services. The company’s total assets grew to $20.7 million as of March 31, 2025, up from $15.1 million at the end of 2024, largely due to the acquisition of GPCR USA.

In January 2025, Exicure completed the acquisition of GPCR Therapeutics USA Inc. for $1.6 million, marking a strategic move to enhance its product pipeline. This acquisition includes a License and Collaboration Agreement that requires Exicure to make milestone payments and royalties based on the success of GPCR's clinical trials, particularly a Phase 2 trial focused on blood cancer patients. The company also established a new subsidiary, KC Creation Co., Ltd., in South Korea, aimed at diversifying its business and exploring collaborations in the biotechnology sector.

Despite the positive developments, Exicure faces challenges regarding its financial stability. As of March 31, 2025, the company reported cash and cash equivalents of $10.4 million, which management believes may not be sufficient to fund operations for the next 12 months. The company has expressed substantial doubt about its ability to continue as a going concern without additional financing. Exicure is actively exploring various strategic alternatives, including potential partnerships and capital raises, to secure the necessary funding for its operations and growth initiatives.

Looking ahead, Exicure's management remains cautious but optimistic about its strategic direction. The company is focused on executing its plans related to the GPCR acquisition and is committed to enhancing its operational capabilities. However, the ongoing need for capital and the uncertainties surrounding market conditions and regulatory compliance pose significant risks to its future performance.