OSR Holdings Reports $15.9 Million Net Loss for Fiscal Year 2024 Amid Revenue Growth

OSR Holdings, Inc. has reported a net loss of approximately $15.9 million for the fiscal year ending December 31, 2024, a significant increase from a loss of $2.4 million in the previous year. The company generated revenue of $4.81 million in 2024, primarily from its subsidiary RMC, which focuses on the distribution of medical devices in South Korea. This revenue reflects a modest increase from $4.38 million in 2023. The overall financial performance indicates a continued struggle for profitability, with the company facing substantial operating losses as it invests heavily in research and development for its pharmaceutical product candidates.

In terms of strategic developments, OSR Holdings completed its business combination with OSR Co., Ltd. on February 14, 2025, which has positioned the company to leverage its subsidiaries' innovative healthcare technologies. The company operates under a hub-and-spoke model, with a centralized executive team supporting its subsidiaries, which include Vaximm and Darnatein, both engaged in developing novel therapies for cancer and degenerative diseases. The business combination is expected to enhance OSR's market presence and operational capabilities.

Operationally, OSR Holdings has made strides in expanding its product pipeline, with Vaximm advancing its oral immunotherapy candidates for cancer treatment, including VXM01, which is currently in Phase 2 clinical trials. Darnatein is developing design-augmented biologics aimed at treating age-related degenerative diseases. The company has also reported a growing interest in its product candidates, although it has yet to achieve significant market penetration or revenue generation from these initiatives.

The company has identified several material weaknesses in its internal controls over financial reporting, which it is actively working to remediate. These weaknesses include improper use of funds from its Trust Account and insufficient personnel in its accounting department. Management has outlined a plan to enhance internal controls, including improved oversight of cash management and increased staffing in the finance department. The company’s ability to address these issues is critical for its future financial stability and compliance with regulatory requirements.

Looking ahead, OSR Holdings anticipates that it will require substantial additional capital to fund its operations and product development efforts. The company has entered into an equity purchase agreement with White Lion GBM Innovation Fund, allowing it to raise up to $80 million in gross proceeds. However, the cancellation of a previously anticipated PIPE investment has raised concerns about the company's liquidity and ability to sustain operations. The management team remains focused on securing necessary funding while navigating the challenges of the competitive healthcare market.