Upstream Bio Reports $39.97 Million Net Loss in Q2 2025 Amid Increased R&D Expenses

Upstream Bio, Inc. reported significant financial results for the second quarter of 2025, revealing a net loss of $39.97 million, compared to a loss of $14.68 million in the same period of 2024. For the first half of 2025, the company recorded a net loss of $67.24 million, up from $25.57 million in the prior year. The increase in losses is attributed primarily to heightened research and development expenses, which surged to $37.87 million in the second quarter, a 169% increase from $14.07 million in the same quarter of 2024. Total operating expenses for the first half of 2025 reached $77.86 million, compared to $33.70 million in the previous year.

In terms of revenue, Upstream Bio generated $937,000 in collaboration revenue for the second quarter of 2025, a 83% increase from $510,000 in the same quarter of 2024. For the first half of 2025, collaboration revenue totaled $1.50 million, up from $1.15 million in the prior year. The revenue growth is primarily linked to ongoing clinical trials for the company's lead product, verekitug, under the Maruho License Agreement.

The company has also made strategic advancements, including the completion of its initial public offering (IPO) in October 2024, which raised $268.8 million in net proceeds. As of June 30, 2025, Upstream Bio reported cash, cash equivalents, and short-term investments totaling $393.6 million, a decrease from $479.2 million at the end of 2024. The decline in cash reserves is largely due to increased operational expenditures and investments in research and development.

Operationally, Upstream Bio has focused on advancing its clinical trials for verekitug, which targets severe respiratory disorders. The company has completed enrollment in its Phase 2 clinical trials for chronic rhinosinusitis with nasal polyps and severe asthma, with top-line data expected in the third quarter of 2025 and the first quarter of 2026, respectively. The company anticipates continued increases in research and development expenses as it progresses through these trials and prepares for potential commercialization.

Looking ahead, Upstream Bio expects to incur significant operating losses as it continues to invest in the development of verekitug and other potential product candidates. The company acknowledges the need for additional financing to support its operations and growth strategy, indicating that it may pursue equity offerings or debt financing in the future. Despite the challenges, Upstream Bio remains optimistic about its cash reserves being sufficient to fund operations through at least 2027, contingent on the successful development and regulatory approval of its product candidates.