Rallybio Reports $212,000 Revenue in Q1 2025, Net Loss Improves to $9.4 Million

Rallybio Corporation reported its financial results for the first quarter of 2025, revealing a total revenue of $212,000, a significant increase from zero revenue in the same period last year. This revenue stemmed from a collaboration agreement with Johnson & Johnson, which included an upfront payment for data collection and submission services. Despite this revenue, the company continues to operate at a loss, posting a net loss of $9.4 million for the quarter, a notable improvement compared to the $19.0 million loss reported in the first quarter of 2024. The loss per share also decreased from $0.47 to $0.21 year-over-year.

Operating expenses for the quarter totaled $9.9 million, down from $19.8 million in the prior year, primarily due to reduced research and development costs, which fell from $12.9 million to $5.7 million. This reduction was attributed to decreased clinical development costs associated with the RLYB212 program, which was discontinued in April 2025 after failing to meet target concentrations in a Phase 2 trial. General and administrative expenses also decreased from $6.9 million to $4.2 million, reflecting the impact of a workforce reduction implemented in early 2024.

Rallybio's cash, cash equivalents, and marketable securities stood at $54.5 million as of March 31, 2025, providing a runway to fund operations into the first half of 2027. However, the company anticipates needing substantial additional capital to support the ongoing development of its product candidates, including RLYB116, which is in early-stage clinical development. The company plans to initiate a confirmatory pharmacokinetic and pharmacodynamic study of RLYB116 in healthy volunteers in the second quarter of 2025, with results expected later in the year.

In terms of operational developments, Rallybio has made strategic decisions to focus on its lead program, RLYB116, and its preclinical candidates, REV102 and RLYB332. The company has also entered into a collaboration with Recursion Pharmaceuticals to develop a small molecule targeting an ENPP1 inhibitor for the treatment of hypophosphatasia. Despite the challenges faced, including the discontinuation of the RLYB212 program, Rallybio remains committed to advancing its pipeline and addressing unmet medical needs in rare diseases. The outlook remains cautious, with the company emphasizing the need for additional funding to achieve its long-term goals.