Oncotelic Therapeutics Reports Decreased Net Loss and Focus on Strategic Partnerships

Oncotelic Therapeutics, Inc. reported a net loss of approximately $364,264 for the first quarter of 2025, a decrease from a net loss of $475,175 in the same period of 2024. The company’s total operating expenses for the quarter were $101,100, down from $167,222 year-over-year, primarily due to reduced general and administrative costs, which fell from $166,742 to $100,803. Research and development expenses also decreased slightly from $480 to $297. The reduction in losses reflects the company's ongoing efforts to streamline operations and manage costs effectively.

The company’s financial position showed a slight decline in total assets, which amounted to $26.67 million as of March 31, 2025, compared to $26.68 million at the end of 2024. Current liabilities increased to $19.48 million from $19.20 million, with significant components including convertible debt and contingent liabilities. The accumulated deficit rose to $38.34 million, reflecting the ongoing challenges in achieving profitability. The company’s cash reserves decreased to $79,173 from $86,128, indicating a need for continued capital management.

Strategically, Oncotelic has been focusing on its joint venture with GMP Bio, which is developing OT-101 for various cancer treatments and COVID-19. The joint venture has initiated a manufacturing facility in San Diego and is working on multiple compounds, including a nanoparticle platform aimed at enhancing treatment efficacy. The company has also entered into a strategic partnership with Shanghai Medicilon, which will support the development of up to 20 investigational new drug projects. These initiatives are expected to bolster Oncotelic's product pipeline and potentially enhance revenue generation in the future.

Operationally, Oncotelic has seen a shift in its cost structure, with many research and development expenses now being borne by the joint venture. This transition is anticipated to allow for increased focus on other product candidates, including apomorphine and OXi4503, while also exploring AI technologies for clinical development. The company’s employee headcount remains stable, and it continues to evaluate its operational efficiency as it navigates the complexities of the biopharmaceutical landscape.

Looking ahead, Oncotelic acknowledges the need for additional capital to sustain its operations and continue product development. Management is actively exploring various financing options, including equity and debt, to support its strategic initiatives. However, the company has expressed concerns regarding its ability to continue as a going concern, given its history of losses and current working capital deficit. The outlook remains contingent on successful fundraising efforts and the advancement of its product candidates through clinical trials.