Gain Therapeutics Reports $4.53 Million Net Loss in Q1 2025, Faces Liquidity Challenges

Gain Therapeutics, Inc. reported a net loss of $4.53 million for the first quarter of 2025, compared to a loss of $4.01 million in the same period of the previous year. The company's total operating expenses for the quarter were $4.37 million, slightly down from $4.38 million year-over-year. Research and development expenses decreased to $2.26 million from $2.51 million, attributed to the recognition of research grant income and optimization of pipeline costs, although this was partially offset by increased stock-based compensation. General and administrative expenses rose to $2.11 million from $1.87 million, primarily due to higher legal and professional fees.

As of March 31, 2025, Gain Therapeutics had cash and cash equivalents totaling $9.07 million, a decrease from $10.39 million at the end of 2024. The company’s accumulated deficit increased to $81.19 million from $60.78 million over the same period. The increase in liabilities was notable, with total liabilities rising to $5.84 million from $4.78 million, driven by a significant increase in accounts payable, which rose to $2.15 million from $0.95 million. The company continues to face liquidity challenges, raising substantial doubt about its ability to continue as a going concern without additional financing.

Strategically, Gain Therapeutics has been active in advancing its clinical programs, particularly its lead candidate GT-02287 for Parkinson's disease. The company announced the dosing of the first participant in a Phase 1b clinical trial for this candidate in March 2025. Additionally, the company has been expanding its operational capabilities, including the formation of a Clinical Advisory Board to support the development of GT-02287. The company also raised $2.42 million through its at-the-market offering program during the first quarter, selling over 1 million shares.

Looking ahead, Gain Therapeutics anticipates continued operating losses as it invests in research and development to advance its product candidates. The company plans to seek additional capital through various means, including public and private equity offerings, collaborations, and licensing agreements. Management has indicated that it is actively reviewing its cost structure to optimize expenditures and improve its cash burn rate. However, the company acknowledges that its ability to continue operations is contingent on securing additional funding, as its current cash resources are projected to be insufficient to meet operational needs beyond the fourth quarter of 2025.