Raphael Pharmaceutical Inc. Reports $1.52 Million Net Loss and Advances Clinical Research

Raphael Pharmaceutical Inc. reported a net loss of $1.52 million for the fiscal year ending December 31, 2024, an increase of 13% from the previous year's loss of $1.34 million. The company's operating expenses rose to $1.51 million, primarily driven by a 36.3% increase in research and development costs, which totaled $776,000, attributed to one-time share-based compensation. General and administrative expenses decreased slightly to $733,000, reflecting lower professional service fees. The company has not generated any revenue to date and continues to rely on external financing to support its operations.

In terms of strategic developments, Raphael Pharmaceutical has made significant progress in its clinical research efforts. The company recently completed a proof-of-concept study for its lead product candidate aimed at treating rheumatoid arthritis (RA), which showed promising results. The study, conducted in the U.S. under the management of Citruslabs, involved 12 participants and indicated a 19.2% reduction in the Disease Activity Score (DAS28) after eight weeks of treatment. The company plans to further investigate the efficacy of its cannabinoid-based formula and is also developing a novel treatment for asthma, leveraging insights from its COVID-19 research.

Operationally, Raphael Pharmaceutical has focused on building its research capabilities through collaborations, particularly with the Medical Cannabis Research Center at Rambam. The company has entered into a research agreement with Rambam, committing to fund studies aimed at understanding the effects of cannabis strains on immune cells. As of December 31, 2024, the company had no employees but relied on a small team of consultants, including its Chief Technology Officer, who plays a critical role in its research initiatives.

Looking ahead, Raphael Pharmaceutical faces challenges in securing additional funding to support its ongoing research and development activities. As of the end of 2024, the company had approximately $19,000 in cash and cash equivalents, which it expects will only sustain operations through the second quarter of 2025. The company anticipates needing around $500,000 for research and development and $700,000 for capital expenditures over the next year. The management has expressed substantial doubt about its ability to continue as a going concern without securing further financing.

In summary, Raphael Pharmaceutical Inc. is navigating a challenging financial landscape while advancing its clinical research on cannabinoid-based therapies. The company is focused on obtaining regulatory approvals for its product candidates and expanding its research capabilities, but it must address its funding needs to sustain its operations and development efforts in the near future.