Protara Therapeutics Reports $11.9 Million Net Loss in Q1 2025, Increases Investment in Clinical Programs

Protara Therapeutics, Inc. reported a net loss of $11.9 million for the first quarter of 2025, compared to a loss of $11.1 million in the same period of the previous year. The company's total operating expenses increased to $14.1 million from $11.9 million year-over-year, driven primarily by higher research and development costs, which rose to $9.1 million from $7.7 million. General and administrative expenses also saw an increase, totaling $5.0 million, up from $4.1 million in the prior year. The increase in operating expenses reflects the company's ongoing investment in its clinical programs, particularly for TARA-002 and IV Choline Chloride.

In terms of financial position, Protara's cash and cash equivalents, along with marketable debt securities, decreased to $157.5 million as of March 31, 2025, down from $170.3 million at the end of 2024. The company reported a working capital of $119.5 million and stockholders' equity of $158.5 million. The decline in cash reserves was attributed to net cash used in operating activities of $14.7 million, which included adjustments related to working capital and a net loss for the period. The company continues to rely on capital raises to fund its operations, having raised approximately $2.5 million from the exercise of underwriters' options in January 2025.

Operationally, Protara is advancing its clinical programs, particularly TARA-002, which is being evaluated in a Phase 2 trial for non-muscle invasive bladder cancer (NMIBC) and lymphatic malformations (LMs). The company has reported promising interim data from its ADVANCED-2 trial, with a complete response rate of 100% in BCG-Unresponsive patients at six months. Additionally, Protara is preparing to initiate a Phase 3 trial for IV Choline Chloride, which has received Fast Track Designation from the FDA. The company is also exploring potential combination therapies for TARA-002, indicating a strategic focus on expanding its clinical applications.

Looking ahead, Protara anticipates continued investment in its research and development efforts, with expectations of significant operating losses as it seeks to bring its product candidates to market. The company has indicated that it will need to raise additional capital to support its ongoing clinical trials and operational needs. Protara's management believes that its current financial resources are sufficient to meet liquidity needs for at least the next twelve months, although they acknowledge the potential challenges in securing future funding amid market volatility and economic uncertainties.