Palisade Bio Reports Significant Increase in License Revenue and Operating Expenses for Q2 2026

Palisade Bio, Inc. reported its financial results for the second quarter of 2026, revealing a license revenue of $500,000, a significant increase from zero in the same period last year. The company’s total operating expenses surged to $12.2 million, up from $2.8 million in the prior year, primarily driven by a 342% increase in research and development costs, which reached $7.4 million. General and administrative expenses also rose sharply, totaling $4.8 million compared to $1.2 million in the previous year. The net loss for the quarter was $10.6 million, a substantial increase from a loss of $2.8 million in the same quarter of 2025.

For the first half of 2026, Palisade Bio reported a net loss of $20.2 million, compared to a loss of $5.0 million for the same period in 2025. The increase in losses was attributed to heightened research and development activities, particularly related to the advancement of its lead product candidate, PALI-2108, which is in Phase 2 clinical trials for inflammatory bowel disease. The company’s total operating expenses for the first half of 2026 were $22.9 million, significantly higher than the $5.2 million reported in the first half of 2025.

Palisade Bio has made strategic advancements, including the FDA's clearance of its Investigational New Drug Application for the global Phase 2 ASCENTRA-UC clinical trial of PALI-2108. The trial is expected to enroll approximately 204 patients and evaluate the drug's efficacy and safety. The company is also preparing to submit an IND for a Phase 2 trial in Crohn's disease in the latter half of 2026. These developments mark a critical transition for Palisade as it moves from early clinical evaluation to broader Phase 2 development.

The company’s cash and cash equivalents stood at $125.2 million as of June 30, 2026, a decrease from $133.4 million at the end of 2025. This decline is attributed to cash used in operating activities, which totaled $11.5 million for the first half of 2026. Despite the losses, management believes that the current cash balance is sufficient to fund operations through significant clinical development milestones, including the anticipated primary efficacy readout of the ASCENTRA-UC trial in the second half of 2027.

Looking ahead, Palisade Bio anticipates continued net losses as it invests in the development of PALI-2108. The company plans to seek additional funding through various means, including public and private financings, to support its ongoing research and development efforts. The successful transition to profitability will depend on achieving adequate revenue levels to cover operational costs, a challenge that remains unproven given the company's limited operating history.