Palisade Bio Reports $2.23 Million Net Loss, Focuses on PALI-2108 Development

Palisade Bio, Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $2.23 million, a 37% improvement from the $3.53 million loss recorded in the same period of 2024. The company attributed this reduction primarily to a significant decrease in research and development expenses, which fell by 57% to $950,000, down from $2.21 million a year earlier. This decline was largely due to the completion of preclinical joint development activities related to its lead product candidate, PALI-2108, which has transitioned into clinical trials.

Total operating expenses for the quarter were $2.31 million, compared to $3.67 million in the prior year, reflecting a 37% decrease. General and administrative expenses also saw a slight reduction, totaling $1.36 million, down from $1.46 million. The company’s cash and cash equivalents stood at approximately $7.23 million as of March 31, 2025, a decrease from $9.82 million at the end of 2024, indicating a need for future financing to support ongoing operations and clinical development.

Palisade Bio is currently focused on advancing PALI-2108, which is being developed as a treatment for inflammatory bowel disease. The company commenced a Phase 1 clinical trial in Canada in November 2024, following approval from Health Canada. The trial aims to assess the safety and tolerability of PALI-2108, with topline data expected to be announced in the second quarter of 2025. The company plans to submit an Investigational New Drug Application to the U.S. Food and Drug Administration in 2025, with hopes of initiating U.S. clinical trials in early 2026.

In terms of operational metrics, Palisade Bio's employee headcount has been reduced by 25% as part of a restructuring effort to streamline operations and focus on the development of PALI-2108. The company has also entered into a research collaboration and license agreement with Giiant Pharma, which includes milestone payments tied to the development of PALI-2108. As of March 31, 2025, Palisade had approximately 4.8 million shares of common stock outstanding, reflecting a significant increase from the previous year due to warrant exercises and equity offerings.

Looking ahead, Palisade Bio has expressed substantial doubt about its ability to continue as a going concern, citing the need for additional financing to support its operations through 2025. The company plans to explore various funding options, including equity offerings and collaborations, to ensure it can meet its operational needs and continue the development of PALI-2108.