Palisade Bio Reports $2.8 Million Net Loss for Q2 2025, 32% Improvement Year-Over-Year

Palisade Bio, Inc. reported a net loss of $2.8 million for the three months ended June 30, 2025, a 32% improvement compared to a net loss of $4.1 million during the same period in 2024. The company's total operating expenses decreased by 32% to $2.8 million, down from $4.2 million in the prior year. This reduction was primarily driven by a significant decrease in research and development expenses, which fell by 36% to $1.7 million, attributed to the completion of preclinical joint development activities related to its lead product candidate, PALI-2108. General and administrative expenses also decreased by 26% to $1.2 million, reflecting lower share-based compensation and reduced consulting costs.

For the six months ended June 30, 2025, Palisade Bio reported a net loss of $5.0 million, a 34% decrease from a loss of $7.6 million in the same period of 2024. Total operating expenses for the first half of 2025 were $5.2 million, down 35% from $7.9 million in the previous year. The decline in research and development expenses was particularly notable, decreasing by 46% to $2.6 million, as the company transitioned from preclinical to clinical trial phases for PALI-2108. The company recognized clinical trial-related expenses of approximately $1.9 million during the first half of 2025, compared to just $0.1 million in the prior year.

Palisade Bio's financial position showed a decline in cash and cash equivalents, which totaled $5.4 million as of June 30, 2025, down from $9.8 million at the end of 2024. The company’s total assets decreased to $6.7 million from $10.9 million, while total liabilities increased to $4.0 million from $3.4 million. The increase in liabilities was primarily due to higher accrued liabilities related to clinical trial expenses. The company’s accumulated deficit also grew to $141.0 million, reflecting ongoing operational losses.

Strategically, Palisade Bio has focused on advancing PALI-2108, which is being developed for the treatment of inflammatory bowel disease. The company has initiated a Phase 1 clinical trial for PALI-2108, with positive results reported in May and August 2025. The company plans to submit an Investigational New Drug Application to the U.S. Food and Drug Administration to commence clinical trials in the U.S. in the first half of 2026. Additionally, on July 23, 2025, Palisade entered into a warrant inducement agreement that resulted in gross cash proceeds of approximately $3.9 million, which will be used for working capital and further development of PALI-2108.

Looking ahead, Palisade Bio anticipates continued operational losses and recognizes the need for additional financing to support its activities. The company has expressed substantial doubt about its ability to continue as a going concern without raising further capital. Management plans to pursue various funding avenues, including equity offerings and collaborations, to ensure the sustainability of its operations and the advancement of its clinical programs.