Mural Oncology Reports $33.1 Million Net Loss and Discontinues Lead Product Development

Mural Oncology plc reported a net loss of $33.1 million for the first quarter of 2025, compared to a net loss of $30.9 million in the same period of the previous year. The company's total operating expenses for the quarter were $34.4 million, slightly up from $34.0 million year-over-year. Research and development expenses increased to $27.4 million from $26.9 million, primarily due to heightened spending on early discovery programs and the ARTISTRY-6 trial. General and administrative expenses remained relatively stable at $7.0 million, down from $7.2 million, as decreased employee-related costs offset increased professional fees.

In terms of liquidity, Mural's cash and cash equivalents decreased to $106.7 million as of March 31, 2025, down from $115.5 million at the end of 2024. The company also reported a significant reduction in marketable securities, which fell to $1.0 million from $28.9 million. The decrease in cash and cash equivalents was attributed to cash flows used in operating activities, which totaled $36.8 million for the quarter. Mural's total assets decreased to $132.1 million from $169.4 million, while total liabilities also declined to $24.2 million from $28.9 million.

Strategically, Mural announced the discontinuation of all clinical development of its lead product candidate, nemvaleukin alfa, following an interim analysis of its Phase 3 ARTISTRY-7 trial, which did not meet its primary endpoint. This decision was accompanied by a workforce reduction of approximately 90%, impacting around 104 positions. The company is now exploring strategic alternatives to maximize shareholder value, including potential acquisition offers or mergers. Mural has engaged Lucid Capital Markets, LLC as its financial advisor in this process.

The company has faced challenges since its separation from Alkermes plc in November 2023, which included a cash contribution of $275 million to support its operations. However, Mural has indicated that its existing cash and marketable securities will not be sufficient to fund ongoing development efforts and meet obligations in the long term. As a result, there is substantial doubt about the company's ability to continue as a going concern without raising additional funds. Mural has initiated an at-the-market offering agreement with Jefferies LLC to potentially raise up to $75 million, although no shares have been sold under this agreement as of the reporting date.

Looking ahead, Mural's management has acknowledged the uncertainty surrounding its future operations and funding needs. The company will need to secure additional financing to advance its product candidates and maintain operations. The exploration of strategic alternatives is expected to be a critical focus in the coming months, as Mural seeks to navigate its financial challenges and determine the best path forward for its oncology business.