Tempest Therapeutics Reports $7.87 Million Net Loss in Q2 2025, Initiates Cost-Reduction Measures

Tempest Therapeutics, Inc. reported a net loss of $7.87 million for the second quarter of 2025, a decrease from a net loss of $9.57 million in the same period last year. For the first half of 2025, the company’s net loss was $18.73 million, compared to $17.47 million for the first half of 2024. The company’s operating expenses for the second quarter were $7.97 million, down from $9.58 million in the prior year, primarily due to a 34% reduction in research and development expenses, which totaled $3.87 million compared to $5.84 million in the second quarter of 2024. General and administrative expenses increased slightly to $4.10 million from $3.75 million, attributed to one-time separation costs related to workforce reductions.

In terms of financial position, Tempest's cash and cash equivalents decreased to $14.28 million as of June 30, 2025, down from $30.27 million at the end of 2024. The company’s total assets also fell to $24.48 million from $41.49 million, while total liabilities decreased to $14.70 million from $22.36 million. The accumulated deficit increased to $225.84 million, reflecting ongoing operational losses since inception. The company has initiated cost-reduction measures, including a significant workforce reduction of 21 out of 26 employees, effective April 30, 2025, as part of a broader strategic review aimed at maximizing shareholder value.

Strategically, Tempest is focusing on advancing its clinical-stage programs, particularly amezalpat (formerly TPST-1120), which is poised to enter a pivotal Phase 3 study for first-line liver cancer. The company has received positive feedback from the FDA regarding the trial design and has also secured Orphan Drug Designation for amezalpat. Additionally, the company is preparing to initiate a Phase 2 study for its second clinical candidate, TPST-1495, targeting Familial Adenomatous Polyposis. The company has retained MTS Health Partners to assist in exploring strategic alternatives, including potential mergers or partnerships.

Looking ahead, Tempest anticipates that its existing cash resources will fund operations for less than 12 months, raising substantial doubt about its ability to continue as a going concern. The company is actively seeking strategic alternatives to enhance its financial position and operational capabilities. As of June 30, 2025, the company had $11.6 million available for sale under its at-the-market program, which it may utilize to raise additional capital. The ongoing strategic review and potential partnerships are critical for the company’s future, as it aims to navigate the challenges posed by its current financial situation and operational losses.