Palisade Bio Reports Increased Financial Losses and Strong Cash Position in Q1 2026

Palisade Bio, Inc. reported a significant increase in its financial losses for the first quarter of 2026, with a net loss of $9.6 million, compared to a net loss of $2.2 million in the same period of the previous year. The company's total operating expenses surged to $10.7 million, up from $2.3 million in the first quarter of 2025, primarily driven by increased research and development costs associated with its lead product candidate, PALI-2108. Research and development expenses rose to $6.4 million from $950,000, reflecting heightened clinical trial activities and employee-related costs. General and administrative expenses also increased significantly, reaching $4.4 million compared to $1.4 million in the prior year.

The company's cash and cash equivalents stood at $132.6 million as of March 31, 2026, a slight decrease from $133.4 million at the end of 2025. This decline was attributed to cash used in operating activities, which amounted to $3.9 million for the quarter. However, Palisade Bio's financial position remains strong, bolstered by a successful equity offering in October 2025 that generated net proceeds of approximately $127.6 million. This funding has provided the company with sufficient capital to support its operations and clinical development plans for at least the next year.

Palisade Bio has made strategic advancements in its clinical programs, particularly with PALI-2108, which is being developed for the treatment of inflammatory bowel disease. The company has completed a Phase 1 clinical study and is preparing for a Phase 2 trial, with plans to assess the drug's efficacy in patients with moderate to severe ulcerative colitis and Crohn's disease. The company reported positive results from its exploratory Phase 1b cohort in fibrostenotic Crohn's disease, indicating favorable safety and tolerability, as well as encouraging early clinical activity.

In terms of operational metrics, Palisade Bio's employee headcount has increased to support its expanding clinical development efforts. The company has also engaged in various equity transactions, including the issuance of common stock to vendors and in connection with its research program funding agreement with the Crohn's and Colitis Foundation. As of March 31, 2026, the total number of common shares outstanding was approximately 167.4 million, reflecting the company's ongoing efforts to raise capital and fund its research initiatives.

Looking ahead, Palisade Bio anticipates continued net losses as it invests in the development of PALI-2108. The company expects to incur substantial expenses related to its clinical trials and operational activities. Management believes that the current cash reserves will be adequate to fund operations through key clinical milestones, including the anticipated Phase 2 efficacy readouts for both ulcerative colitis and Crohn's disease in 2027 and 2028, respectively. However, the company acknowledges the need for additional financing in the future to sustain its operations and support potential commercialization efforts.