Tempest Therapeutics Reports $10.9 Million Net Loss in Q1 2025, Announces Workforce Reduction

Tempest Therapeutics, Inc. reported a net loss of $10.9 million for the first quarter of 2025, an increase from a loss of $7.9 million during the same period in 2024. The company's operating expenses rose to $10.9 million, primarily driven by a 76% increase in research and development costs, which reached $7.6 million compared to $4.3 million in the prior year. General and administrative expenses decreased slightly to $3.3 million from $3.6 million. The increase in research and development expenses is attributed to preparations for a pivotal Phase 3 trial of its lead product candidate, amezalpat, for the treatment of hepatocellular carcinoma (HCC).

As of March 31, 2025, Tempest had cash and cash equivalents of $21.5 million, down from $30.3 million at the end of 2024. The company has incurred operating losses since its inception, with an accumulated deficit of $218 million. In light of its financial situation, Tempest announced plans to explore strategic alternatives, including potential mergers, acquisitions, or partnerships, to maximize shareholder value. The company has retained MTS Health Partners, L.P. to assist in this strategic review process.

In a significant operational change, Tempest reduced its workforce by 21 of its 26 full-time employees, effective April 30, 2025, as part of cost-cutting measures. This reduction is expected to incur approximately $1.5 million in cash expenditures, primarily for severance and related costs. The company also repaid $3.5 million in debt to Oxford Finance LLC on April 8, 2025, terminating its loan agreement and releasing all associated liens and security interests.

Tempest's stock underwent a one-for-thirteen reverse stock split on April 8, 2025, aimed at increasing the per-share market price and regaining compliance with Nasdaq listing requirements. Following the split, the company had 3,519,602 shares outstanding. The reverse stock split may impact liquidity and trading volume, as it reduces the number of shares available for trading. The company continues to face challenges in securing additional funding, which is critical for its ongoing operations and development programs.

Looking ahead, Tempest plans to advance its clinical programs, particularly amezalpat, which has received Fast Track Designation from the FDA, and TPST-1495, which is expected to enter a Phase 2 study in familial adenomatous polyposis. However, the company acknowledges substantial doubt about its ability to continue as a going concern without additional funding or successful strategic transactions.