Veru Inc. Reports $7.9 Million Net Loss in Q2 Fiscal 2025, Faces Capital Needs

Veru Inc. reported its financial results for the second quarter of fiscal 2025, revealing a net loss of $7.9 million, or $0.05 per share, compared to a net loss of $10.0 million, or $0.07 per share, in the same period last year. The company’s total operating expenses increased to $9.1 million from $8.9 million year-over-year, driven primarily by a rise in research and development costs associated with its ongoing Phase 2b clinical trial for enobosarm, which aims to augment fat loss and prevent muscle loss in older patients. Research and development expenses rose to $3.9 million from $3.0 million, while selling, general, and administrative expenses decreased to $5.2 million from $5.9 million, reflecting reduced corporate personnel costs.

In terms of significant changes, Veru's financial position has been impacted by the sale of its FC2 business, which closed on December 30, 2024, for $18 million. This transaction resulted in a loss of $4.2 million, which was recorded in the financial statements. The company also recognized a gain of $1.0 million from the sale of ENTADFI assets during the quarter, contributing to a total gain of $1.7 million for the six months ended March 31, 2025. The company’s cash and cash equivalents decreased to $20.0 million from $24.9 million at the end of the previous fiscal year, reflecting ongoing operational cash burn.

Operationally, Veru has made strides in its clinical development programs. The Phase 2b QUALITY clinical trial for enobosarm has enrolled 168 subjects across 14 clinical sites in the U.S., with positive topline results announced in January 2025. The trial demonstrated a statistically significant preservation of lean body mass in patients receiving enobosarm alongside semaglutide, a GLP-1 receptor agonist. The company is also exploring the development of sabizabulin as a treatment for inflammation in atherosclerotic cardiovascular disease, with plans for a Phase 2 study to assess its efficacy.

Looking ahead, Veru faces substantial capital needs to support its drug development and commercialization efforts. The company has indicated that its current cash reserves may not be sufficient to fund operations for the next twelve months, raising concerns about its ability to continue as a going concern. To address this, Veru plans to seek additional funding through public or private equity offerings and other financing sources. The company’s future capital requirements will depend on various factors, including the success of its clinical trials and market conditions.