Galera Therapeutics Reports $1.6 Million Net Loss in Q1 2025, Focuses on New Cancer Treatment

Galera Therapeutics, Inc. reported a net loss of $1.6 million for the first quarter of 2025, a significant improvement compared to a net loss of $4.4 million during the same period in 2024. The company’s operating expenses decreased to $1.96 million from $4.58 million year-over-year, primarily due to reduced research and development costs, which fell to $93,000 from $1.49 million. General and administrative expenses also declined to $1.87 million from $3.09 million, reflecting a strategic reduction in workforce and operational costs following the company's decision to wind down its commercial readiness efforts for its lead product candidate, avasopasem.

As of March 31, 2025, Galera's cash and cash equivalents stood at $6.7 million, down from $8.3 million at the end of 2024. The company has an accumulated deficit of $458 million, indicating ongoing financial challenges. The decrease in cash was attributed to net cash used in operating activities of $2.24 million during the quarter, although this was an improvement from $4.79 million in the prior year. The company also generated $635,000 from financing activities, primarily from a private placement completed in December 2024.

In terms of strategic developments, Galera completed the acquisition of Nova Pharmaceuticals, Inc. in December 2024, shifting 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 necessitated an additional clinical trial that the company deemed unfeasible with its current resources. Following the acquisition, Galera's clinical portfolio now includes three product candidates, with a lead program in a Phase 1/2 trial for metaplastic breast cancer.

Operationally, the company has reduced its workforce by approximately 70%, leaving it with just three employees as of March 31, 2025. This reduction was part of cost-cutting measures in response to the halted development of its previous product candidates. The company has also engaged Stifel, Nicolaus & Company, Inc. as a financial advisor to assist in reviewing strategic alternatives aimed at maximizing shareholder value.

Looking ahead, Galera anticipates that its existing cash reserves will fund operations into the first quarter of 2026, but there is substantial doubt about its ability to continue as a going concern beyond that period. The company plans to seek additional financing through equity or debt offerings to support its operations and product development efforts. However, management has acknowledged the uncertainty surrounding its ability to raise sufficient capital, which could impact its operational scope and planned activities.