Spruce Biosciences Reports $14M Net Loss in Q1 2025, Faces Financial Challenges

Spruce Biosciences, Inc. reported a net loss of $14.0 million for the first quarter of 2025, an increase from the $11.6 million loss recorded in the same period of the previous year. The company's total operating expenses for the quarter were $14.5 million, slightly down from $14.6 million in the prior year. Notably, the company did not generate any collaboration revenue during this quarter, a decline from the $2.0 million recognized in the first quarter of 2024. The increase in net loss was attributed to higher clinical development expenses, particularly related to the acquisition of the product candidate SPR202, which incurred costs of $5.7 million.

As of March 31, 2025, Spruce reported cash and cash equivalents of $25.6 million, a decrease from $38.8 million at the end of 2024. The company has an accumulated deficit of $264.3 million and anticipates that it will continue to incur significant losses as it advances its clinical development programs. The company has indicated substantial doubt about its ability to continue as a going concern without additional financing, as its current cash reserves are insufficient to fund operations for the next twelve months.

In terms of strategic developments, Spruce has been focusing on the clinical development of its product candidates, including tralesinidase alfa (TA-ERT) and tildacerfont. The company has also entered into various licensing agreements, including a collaboration with Kaken Pharmaceutical Co., Ltd. for the development of tildacerfont in Japan, which provided an upfront payment of $15 million. However, the company has faced challenges, including a recent notification from Nasdaq regarding non-compliance with listing requirements, which has led to its common stock being suspended from trading on the Nasdaq Capital Market.

Operationally, Spruce has undergone significant changes, including a workforce reduction of 55% approved in April 2025 to prioritize the development of TA-ERT. This reduction is expected to incur approximately $0.9 million in cash charges. The company has also been actively seeking additional financing options to support its operations and product development, including potential out-licensing agreements and equity offerings. The outlook remains uncertain, with the company emphasizing the need for substantial additional capital to continue its operations and advance its product candidates through clinical trials and regulatory approvals.