Quoin Pharmaceuticals Reports $3.8 Million Net Loss in Q1 2025, Increases R&D Spending

Quoin Pharmaceuticals Ltd. reported a net loss of $3.8 million for the first quarter of 2025, compared to a loss of $2.3 million in the same period of the previous year, marking an increase of approximately 64% year-over-year. The company's total operating expenses rose to $4 million, up from $2.5 million in the prior year, driven primarily by a significant increase in research and development costs, which surged to $2.4 million from $885,000. This increase reflects the company's ongoing investment in its lead product, QRX003, which is in late-stage clinical development for Netherton Syndrome.

In terms of financial position, Quoin's total assets decreased to $12.9 million as of March 31, 2025, down from $15.7 million at the end of 2024. The decline was attributed to a reduction in investments, which fell from $10.4 million to $7.7 million. The company's cash and cash equivalents increased slightly to $3.8 million, up from $3.6 million, indicating a modest improvement in liquidity. However, the accumulated deficit grew to approximately $59 million, raising concerns about the company's ability to continue as a going concern without additional capital.

Strategically, Quoin has made significant advancements in its clinical trials, with QRX003 currently being tested in five clinical sites across the United States and plans to expand into international markets, including the UK and Spain. The company has also entered into research agreements with institutions such as the Queensland University of Technology and University College Cork to explore additional therapeutic candidates. Notably, Quoin executed a reverse stock split of its American Depositary Shares (ADSs) in April 2025 to comply with Nasdaq's minimum bid price requirement, which has since been met.

Operationally, Quoin's employee headcount has increased, reflecting its commitment to expanding its research and development capabilities. The company is actively seeking additional funding through equity or debt offerings to support its ongoing operations and clinical trials. Management has expressed substantial doubt about its ability to continue as a going concern for at least the next year, emphasizing the need for further capital to sustain its operations and development programs.

Looking ahead, Quoin Pharmaceuticals aims to complete the late-stage clinical testing of QRX003 and prepare for potential commercialization. The company plans to establish its own sales infrastructure in the U.S. and Europe while exploring partnerships for distribution in other regions. However, the timeline for generating revenue remains uncertain, as the company does not expect to achieve this until it successfully completes development and obtains marketing approval for its product candidates.