Instil Bio Reports $28.2 Million Net Loss in Q1 2025, Driven by Increased Restructuring Charges

Instil Bio, Inc. reported a net loss of $28.2 million for the first quarter of 2025, an increase from a net loss of $24.3 million in the same period of the previous year. The company's total operating expenses rose to $30.6 million, compared to $24.0 million in the first quarter of 2024. This increase was primarily driven by a significant rise in restructuring and impairment charges, which amounted to $16.1 million in Q1 2025, up from $4.3 million in Q1 2024. The company attributed these charges to asset impairments related to its Tarzana facility, which is currently listed for sale.

In terms of financial position, Instil Bio's total assets decreased to $237.4 million as of March 31, 2025, down from $263.6 million at the end of 2024. The decline was largely due to a reduction in marketable securities and the reclassification of the Tarzana facility as held for sale, valued at $112.1 million. The company's cash and cash equivalents increased to $15.4 million, up from $8.8 million at the end of 2024, reflecting a net increase in cash flow from operating activities, which was a cash outflow of $4.2 million for the quarter, significantly improved from a $14.4 million outflow in the prior year.

Operationally, Instil Bio has been focusing on its lead product candidate, AXN-2510/IMM2510, a bispecific antibody targeting PD-L1 and VEGF for solid tumors. The company in-licensed this candidate from ImmuneOnco Biopharmaceuticals in August 2024, along with another monoclonal antibody, AXN-27M/IMM27M. The collaboration is expected to enhance Instil Bio's pipeline and market presence, particularly in the U.S., Europe, and Japan, while ImmuneOnco retains rights in Greater China.

The company has also seen changes in its workforce and operational structure due to ongoing restructuring efforts. As part of its 2024 restructuring plan, Instil Bio has reduced its headcount and consolidated operations, particularly in the UK, which has contributed to lower general and administrative expenses. The total employee count and specific user statistics were not disclosed in the filing, but the company indicated that it expects to continue incurring significant expenses as it advances its clinical development activities.

Looking ahead, Instil Bio anticipates continued net losses as it invests in research and development, particularly for AXN-2510/IMM2510. The company has indicated that its existing cash reserves, along with potential proceeds from the sale of the Tarzana facility, should be sufficient to fund operations through 2026. However, the company remains cautious about future funding requirements and the potential need for additional capital to support its growth and development initiatives.