Processa Pharmaceuticals Reports Q1 2025 Financial Results with Increased Net Loss and Improved Liquidity

Processa Pharmaceuticals, Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $2.83 million, compared to a net loss of $2.73 million for the same period in 2024. The company’s operating expenses for the quarter included $1.59 million in research and development costs, which increased slightly from $1.54 million year-over-year, and $1.26 million in general and administrative expenses, down from $1.27 million in the prior year. The increase in research and development expenses was attributed to higher costs associated with ongoing clinical trials, particularly for the NGC-Cap program, while the decrease in general and administrative expenses was primarily due to reduced professional fees and office expenses.

In terms of liquidity, Processa reported cash and cash equivalents of $2.90 million as of March 31, 2025, a significant increase from $1.19 million at the end of 2024. This increase was largely due to a public offering completed on January 27, 2025, which raised net proceeds of $4.4 million through the sale of common stock and warrants. The company’s total assets rose to $4.81 million, up from $3.23 million at the end of the previous fiscal year, reflecting a stronger financial position. However, the company continues to face challenges, with an accumulated deficit of $90.05 million as of the end of the quarter.

Operationally, Processa has been focused on advancing its pipeline of Next Generation Cancer therapies, with two candidates currently in or having completed Phase 2 trials. The company is actively expanding its clinical study sites for the NGC-Cap trial and is also exploring the potential of its non-oncology drug, PCS499, in treating primary glomerular diseases. The company has not yet generated any product revenue and does not anticipate positive cash flow from operations in the near future, indicating a continued reliance on external financing to support its research and development efforts.

The company’s employee headcount has also seen changes, with a reduction in research and development personnel contributing to lower salary expenses. As of March 31, 2025, Processa had 5,274,240 shares of common stock issued, reflecting an increase from 3,707,628 shares at the end of 2024. The company’s management has indicated that it plans to pursue additional funding through various means, including public or private equity offerings and strategic partnerships, to support its ongoing operations and clinical trials.

Looking ahead, Processa Pharmaceuticals remains focused on its clinical development programs while navigating the challenges of funding and market conditions. The company has expressed the need for additional capital to sustain its operations beyond mid-2025, emphasizing the importance of securing financing to continue its research and development initiatives. The outlook remains cautious, with management acknowledging the uncertainties surrounding future funding and the potential impact on the company’s ability to execute its long-term plans.