Raphael Pharmaceutical Reports $751,000 Net Loss, Launches New RA Treatment

Raphael Pharmaceutical Inc. reported its financial results for the six months ending June 30, 2025, revealing a net loss of $751,000, a decrease of 6% from the $798,000 loss recorded in the same period of 2024. The company, which has yet to generate revenue, attributed the reduction in losses primarily to a significant decrease in research and development expenses, which fell by 47% to $213,000 compared to $403,000 in the prior year. General and administrative expenses, however, increased by 35% to $527,000, reflecting higher professional service costs.

In terms of operational metrics, Raphael Pharmaceutical's total assets increased to $30,000 as of June 30, 2025, up from $27,000 at the end of 2024. The company's liabilities also rose, with total current liabilities reaching $1,078,000, compared to $769,000 at the end of the previous fiscal year. The increase in liabilities was primarily due to higher payables to related parties and accrued expenses. The company's accumulated deficit grew to $9,640,000, up from $8,889,000 at the end of 2024.

Strategically, Raphael Pharmaceutical has made significant strides in product development, launching its proprietary natural formula, "RaphaWell," aimed at supporting rheumatoid arthritis (RA) treatment in the U.S. market. This product launch follows the successful completion of a proof-of-concept clinical study that demonstrated the formula's potential benefits for RA symptom management. The company is also exploring further applications of its cannabinoid-based therapies, including treatments for asthma and COVID-19, leveraging insights gained from its research collaborations.

The company’s cash position remains precarious, with only $20,000 in cash and cash equivalents as of June 30, 2025. Management has indicated that this amount is insufficient to fund projected operating requirements through the third quarter of 2025, necessitating significant additional financing. Raphael Pharmaceutical anticipates needing approximately $700,000 for research and development activities and $500,000 for capital expenditures over the next 12 months. The company has expressed concerns about its ability to continue as a going concern without securing further funding.

Looking ahead, Raphael Pharmaceutical's management remains focused on advancing its clinical trials and obtaining necessary regulatory approvals for its product candidates. The company plans to continue its research efforts while seeking additional financing to support its operations and development initiatives. However, the uncertainty surrounding future funding and market conditions poses risks to the company's operational viability and growth prospects.