Upstream Bio Reports $27.3 Million Net Loss in Q1 2025, Increased R&D Expenses

Upstream Bio, Inc. reported a net loss of $27.3 million for the first quarter of 2025, a significant increase from the $10.9 million loss recorded in the same period of 2024. The company's collaboration revenue remained stable at $0.6 million for both quarters, primarily derived from its ongoing Phase 2 clinical trial for severe asthma under the Maruho License Agreement. Total operating expenses surged to $32.6 million, up from $15.7 million year-over-year, driven largely by a $14.1 million increase in research and development costs, which rose to $25.8 million as the company advanced its clinical programs.

The increase in operating expenses was attributed to heightened activity in the development of its lead candidate, verekitug, which is being evaluated for multiple indications including severe asthma, chronic rhinosinusitis with nasal polyps (CRSwNP), and chronic obstructive pulmonary disease (COPD). Research and development expenses related to the asthma indication alone increased by $3.9 million, reflecting ongoing trial progress and planning for future studies. The company also reported a notable rise in general and administrative expenses, which reached $6.8 million, up from $4.0 million, largely due to increased personnel costs and professional fees.

As of March 31, 2025, Upstream Bio's total assets were valued at $456.2 million, a decrease from $481.7 million at the end of 2024. The decline was primarily due to a reduction in cash and cash equivalents, which fell to $71.3 million from $325.9 million, as the company utilized funds for its clinical trials and operational expenses. The accumulated deficit increased to $218.1 million, reflecting the ongoing investment in research and development without any product revenue to offset costs.

Looking ahead, Upstream Bio anticipates continued significant net operating losses as it progresses with its clinical trials and seeks regulatory approvals for verekitug. The company expects its existing cash, cash equivalents, and short-term investments, totaling $431.4 million, will be sufficient to fund operations through 2027. However, it acknowledges the need for additional financing to support its growth strategy and ongoing clinical development, which may include equity offerings or debt financing. The company remains focused on maximizing the potential of verekitug to address unmet medical needs in inflammatory diseases.