Pulmatrix Reports $9.6 Million Net Loss for Fiscal Year 2024, Enters Merger Agreement with Cullgen

Pulmatrix, Inc. reported a net loss of $9.6 million for the fiscal year ending December 31, 2024, a decrease from a loss of $14.1 million in the previous year. The company generated revenues of $7.8 million, up from $7.3 million in 2023, primarily due to a contract modification related to its collaboration with Cipla for the PUR1900 program. Operating expenses totaled $17.6 million, down from $22.0 million in 2023, reflecting a significant reduction in research and development costs, which fell to $7.2 million from $15.5 million. This decrease was attributed to the completion of the Phase 2b study for PUR1900 and a reduction in related expenses.

In a strategic move, Pulmatrix entered into a merger agreement with Cullgen Inc. on November 13, 2024. The merger, which is subject to stockholder approval and other customary conditions, aims to combine the businesses of both companies, with Cullgen surviving the merger. The Pulmatrix board has unanimously approved the agreement, which is expected to enhance the combined company's capabilities in developing inhaled therapeutic products. The success of this merger is critical for Pulmatrix, as it may determine the company's future operations and financial stability.

Pulmatrix's product pipeline includes several candidates utilizing its proprietary iSPERSE™ technology, which aims to improve drug delivery for conditions such as acute migraine and chronic obstructive pulmonary disease (COPD). The company is currently preparing for a Phase 2 clinical study for PUR3100, an inhaled formulation of dihydroergotamine for acute migraine treatment, following FDA acceptance of its Investigational New Drug application in September 2023. Additionally, Pulmatrix is exploring monetization opportunities for its other clinical assets, including PUR1800, which targets acute exacerbations of COPD.

As of December 31, 2024, Pulmatrix had two full-time employees and reported an accumulated deficit of $297.2 million. The company anticipates continuing to incur significant operating losses as it seeks additional funding to support its ongoing research and development efforts. The total cash and cash equivalents balance was $9.5 million, which is expected to sustain operations for at least the next 12 months. However, the company acknowledges the need for further capital to advance its product candidates and maintain its operations.

Looking ahead, Pulmatrix's future is heavily reliant on the successful completion of the merger with Cullgen and the ability to secure additional funding for its clinical programs. The company faces various risks, including the potential for delays in clinical trials, regulatory approvals, and the challenges of competing in the biopharmaceutical industry. The management remains focused on strategic alternatives and partnerships to enhance its product development and commercialization efforts.