Spruce Biosciences Reports $12.3 Million Net Loss in Q1 2026, Focuses on TA-ERT Development

Spruce Biosciences, Inc. reported a net loss of $12.3 million for the first quarter of 2026, a decrease from the $14.0 million loss recorded in the same period of 2025. The company’s total operating expenses for the quarter were $11.99 million, down from $14.49 million year-over-year, primarily due to a reduction in research and development costs, which fell to $7.58 million from $10.84 million. The decrease in research expenses was attributed to lower clinical development costs and the discontinuation of the tildacerfont program, offset by increased spending on the development of the tralesinidase alfa enzyme replacement therapy (TA-ERT).

As of March 31, 2026, Spruce reported total assets of $56.17 million, an increase from $53.02 million at the end of 2025. The company’s cash and cash equivalents rose to $54.08 million from $48.91 million, bolstered by a successful public offering in April 2026 that generated approximately $69 million in gross proceeds. This offering involved the sale of 1.15 million shares of common stock and pre-funded warrants, which were fully exercised. The company’s accumulated deficit increased to $301.5 million, reflecting ongoing investments in product development without any revenue from product sales.

Strategically, Spruce is focused on advancing TA-ERT, which has received several designations from the FDA, including Breakthrough Therapy and Rare Pediatric Disease Designation. The company plans to submit a biologics license application for TA-ERT in the fourth quarter of 2026. However, the company faces significant risks, including the need for substantial additional financing to support its operations and product development, as well as competition from other biotechnology firms. The company has indicated that it may need to raise additional capital through various means, including equity offerings and collaborations, to sustain its operations and fund ongoing clinical trials.

Operationally, Spruce has not yet commercialized any products and lacks a marketing and sales organization, which could hinder its ability to generate revenue. The company is also dependent on third-party manufacturers for its clinical supplies and must navigate extensive regulatory requirements for its product candidates. As of March 31, 2026, Spruce had 1,372,278 shares of common stock outstanding, reflecting a reverse stock split that took place in August 2025. The company continues to monitor macroeconomic conditions that could impact its business, including geopolitical uncertainties and inflationary pressures.

Looking ahead, Spruce anticipates that its expenses will continue to rise as it progresses through clinical development and prepares for potential commercialization of TA-ERT. The company remains committed to its strategic goals but acknowledges the challenges posed by the need for ongoing financing and the competitive landscape in the biopharmaceutical industry.