Damora Therapeutics Reports $27.8 Million Net Loss and Increased R&D Expenses in Latest Filing

Damora Therapeutics, Inc. (formerly Galecto, Inc.) reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2026. The company recorded a net loss of $27.8 million, a substantial increase from the $2.5 million loss reported in the same period last year. This increase in losses is attributed to a dramatic rise in operating expenses, which totaled $30.8 million compared to $2.6 million in the prior year, primarily driven by heightened research and development costs associated with its product candidates.

Research and development expenses surged to $23.8 million from $0.7 million year-over-year, reflecting the company's intensified focus on its mutCALR portfolio, which includes DMR-001, DMR-002, and DMR-003. The increase was largely due to costs incurred under the Paragon Option Agreement, which accounted for $17 million of the R&D expenses. General and administrative expenses also rose significantly, reaching $7 million compared to $1.9 million in the previous year, driven by increased personnel and professional fees.

In terms of liquidity, Damora reported cash and cash equivalents of $532.9 million as of March 31, 2026, a notable increase from $257.6 million at the end of 2025. This increase was primarily due to a successful public offering in February 2026, which generated approximately $295.5 million in net proceeds. The company also has a remaining capacity of $150 million under its at-the-market (ATM) offering program, which it may utilize for future financing needs.

Strategically, Damora has made significant organizational changes, including the acquisition of Damora Therapeutics, Inc. in November 2025, which has expanded its product pipeline. The company is now prioritizing the development of its mutCALR-targeted therapies, with plans to initiate clinical trials for DMR-001 and DMR-002 in mid-2026 and the second half of 2026, respectively. The company has also increased its authorized shares of common stock from 300 million to 500 million to support its growth initiatives.

Looking ahead, Damora anticipates continued operating losses as it invests heavily in research and development. The company has indicated that it will require additional financing to support its ongoing operations and product development efforts. Despite the challenges, Damora remains focused on advancing its clinical programs and establishing itself in the biopharmaceutical market for hematological disorders.