Galera Therapeutics Reports $2.7 Million Net Loss, Workforce Reduction and Strategic Acquisition

Galera Therapeutics, Inc. reported a net loss of $2.7 million for the six months ended June 30, 2025, a significant reduction from the $8.4 million loss recorded during the same period in 2024. The company's operating expenses also decreased, with research and development costs dropping to $177,000 from $2.9 million year-over-year, and general and administrative expenses falling to $2.9 million from $5.9 million. This reduction in expenses is attributed to a substantial decrease in personnel costs following a workforce reduction of approximately 70% in August 2023, as the company wound down its commercial readiness efforts for its lead product candidate, avasopasem.

In terms of financial position, Galera's total assets decreased to $6.0 million as of June 30, 2025, down from $10.1 million at the end of 2024. The company's cash and cash equivalents also declined to $5.2 million from $8.3 million over the same period. The accumulated deficit increased to $459 million, reflecting the ongoing challenges in achieving profitability. The company has indicated that its existing cash reserves are expected to fund operations only through the first quarter of 2026, raising concerns about its ability to continue as a going concern beyond that timeframe.

Strategically, Galera completed the acquisition of Nova Pharmaceuticals, Inc. in December 2024, which shifted its focus towards developing a pan-inhibitor of nitric oxide synthase for treating advanced breast cancer. This acquisition was part of a broader strategy to explore new avenues for growth after the FDA's Complete Response Letter regarding avasopasem, which required additional clinical trials that the company deemed infeasible with its current resources. Following the acquisition, Galera's clinical portfolio now includes three product candidates, with ongoing trials funded by grants from the National Institutes of Health.

Operationally, the company has reduced its workforce significantly, with only three employees remaining as of June 30, 2025. This reduction was part of a cost-cutting initiative aimed at managing expenses in light of the halted clinical trials and the winding down of previous product development efforts. The company has also engaged Stifel, Nicolaus & Company, Inc. as a financial advisor to assist in reviewing strategic alternatives to maximize shareholder value.

Looking ahead, Galera anticipates the need for substantial additional financing to support its operations and product development activities. The company plans to explore various funding options, including equity or debt financing, but acknowledges the uncertainty surrounding its ability to raise sufficient capital. The management has expressed that if it cannot secure additional funding, it may be compelled to further reduce the scope of its operations, including delaying or discontinuing planned research and development activities.