Spruce Biosciences, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2025. The company recorded no collaboration revenue during the quarter, a stark decline from $602,000 in the same period last year. For the nine months ended September 30, 2025, total revenue was also absent, compared to $4.2 million for the same period in 2024. The company continues to face substantial net losses, reporting a net loss of $24.3 million for the nine months ended September 30, 2025, down from $29.5 million in the prior year. The loss per share for the quarter was $14.58, slightly improved from $15.75 in the previous year.
In terms of operational expenses, Spruce Biosciences reported a total of $25.4 million for the nine months ended September 30, 2025, a decrease from $36.3 million in the same period of 2024. This reduction was primarily driven by a significant decrease in research and development expenses, which fell to $15.4 million from $25 million year-over-year. The company attributed this decline to reduced clinical development activities, particularly related to the discontinuation of the tildacerfont program. General and administrative expenses also decreased, reflecting a reduction in stock-based compensation and other operational costs.
Strategically, Spruce has undergone significant organizational changes, including a workforce reduction of 55% in April 2025 to prioritize the development of tralesinidase alfa (TA-ERT), an investigational therapy for Sanfilippo Syndrome Type B. The company received breakthrough therapy designation from the FDA for TA-ERT in October 2025 and plans to submit a biologics license application in the first quarter of 2026. However, the company has expressed substantial doubt about its ability to continue as a going concern, citing insufficient working capital to fund operations for the next twelve months.
As of September 30, 2025, Spruce had cash and cash equivalents of $10.7 million, a significant decrease from $38.8 million at the end of 2024. The company has indicated that it will require substantial additional financing to support its operations and product development efforts. In October 2025, Spruce raised approximately $50 million through a private placement, but it remains uncertain whether this will be sufficient to meet its future capital needs. The company is exploring various financing options, including potential collaborations and out-licensing agreements, to secure the necessary funds for ongoing and future projects.
Looking ahead, Spruce Biosciences anticipates continued operational challenges as it seeks to advance TA-ERT through clinical development and regulatory approval. The company is also focused on building a commercial organization to support the potential launch of TA-ERT, should it receive regulatory approval. However, the ongoing need for additional capital and the uncertain economic environment pose significant risks to the company's ability to execute its strategic plans effectively.
About SPRUCE BIOSCIENCES, INC.
Spruce Biosciences is a biopharmaceutical company developing therapies for neurological and rare diseases, including enzyme replacement and small molecule drugs. Its pipeline features treatments for MPS IIIB, depression, and congenital adrenal hyperplasia. The company focuses on targeted, biologic and small molecule therapeutics, leveraging strategic licensing, collaborations, and proprietary IP to address high unmet medical needs in niche markets worldwide.
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