Salarius Pharmaceuticals Reports Decreased Losses and Enters Merger Agreement with Decoy Therapeutics

Salarius Pharmaceuticals, Inc. has reported significant financial developments in its latest 10-K filing for the fiscal year ending December 31, 2024. The company, which focuses on developing treatments for cancer, recorded a net loss of $5.6 million, a notable decrease from the $12.5 million loss reported in the previous year. This reduction in losses is attributed to a substantial decrease in research and development expenses, which fell from $7.2 million in 2023 to $0.8 million in 2024, primarily due to cost-saving measures implemented in the latter half of 2023 and reduced spending on its SP-2577 clinical trial.

In terms of operational changes, Salarius has entered into a merger agreement with Decoy Therapeutics, Inc., announced on January 10, 2025. This merger is structured as a stock-for-stock transaction, with Decoy's stockholders expected to own approximately 85.9% of the combined entity post-merger. The agreement is contingent upon raising a minimum of $6 million in future offerings and maintaining Salarius' listing on the Nasdaq. The merger is seen as a strategic move to enhance shareholder value and expand the company's capabilities in oncology therapeutics.

As of December 31, 2024, Salarius reported cash and cash equivalents of $2.4 million, a decrease from $5.9 million in the previous year. The company anticipates that its existing cash resources will be sufficient to fund operations into the later part of the second quarter of 2025. However, the lack of revenue from product sales and ongoing operating losses raise concerns about the company's ability to continue as a going concern. Salarius has indicated that if the merger does not close, it may need to seek additional capital or consider winding down operations.

The company has also made significant changes to its workforce, reducing its employee count to just two full-time employees as of March 2025. This reduction is part of broader cost-cutting measures aimed at extending the company's cash runway. Salarius has not generated any revenue from product sales to date and has incurred an accumulated deficit of $81.9 million as of the end of 2024. The company continues to rely on external funding sources, including grants and equity financing, to support its operations and clinical development activities.

Looking ahead, Salarius remains focused on its clinical pipeline, which includes two drug candidates: SP-3164 and SP-2577. The company has received FDA fast track designation for SP-2577 as a potential treatment for Ewing's Sarcoma, although it has faced challenges in advancing its clinical trials due to funding constraints. The outcome of the merger with Decoy and the ability to secure additional financing will be critical for Salarius as it seeks to navigate the complexities of drug development and commercialization in the competitive biopharmaceutical landscape.