Vistagen Therapeutics Reports Increased Net Loss and Declining Revenue for December 2024 Quarter

Vistagen Therapeutics, Inc. reported a net loss of $14.1 million for the three months ended December 31, 2024, compared to a loss of $6.4 million for the same period in 2023. For the nine months ended December 31, 2024, the company recorded a net loss of $37.8 million, up from $19.8 million in the prior year. Total revenues for the latest quarter were $234,000, a decrease from $411,000 in the same quarter of the previous year. The decline in revenue was attributed to lower sublicense and other revenue, which fell to $234,000 from $411,000 year-over-year. Operating expenses surged to $15.4 million for the quarter, compared to $8.3 million in the prior year, driven primarily by increased research and development costs associated with ongoing clinical trials.

The company's financial position showed a significant decrease in cash and cash equivalents, which fell to $74.7 million as of December 31, 2024, from $119.2 million at the end of March 2024. This decline was largely due to cash used in operating activities, which totaled $32.0 million for the nine months ended December 31, 2024, compared to $18.8 million for the same period in 2023. The increase in cash outflows was primarily linked to the company's ongoing investment in its neuroscience pipeline, particularly in the development of its lead product candidate, fasedienol, for the acute treatment of social anxiety disorder (SAD).

Strategically, Vistagen has made notable advancements in its clinical programs. The company launched its PALISADE-3 and PALISADE-4 Phase 3 clinical trials for fasedienol in late 2023 and September 2024, respectively. These trials are designed to evaluate the efficacy and safety of fasedienol in treating anxiety symptoms in adults with SAD. The company also received positive topline results from its PALISADE-2 trial, which met its primary efficacy endpoint. Additionally, Vistagen is preparing for potential Phase 2B clinical development of its other product candidate, itruvone, for major depressive disorder (MDD), following promising results from earlier trials.

In terms of operational metrics, Vistagen's employee headcount has increased as the company expands its research and development capabilities. The total stockholders' equity decreased to $81.1 million as of December 31, 2024, from $114.3 million at the end of March 2024, reflecting the company's ongoing losses. The company continues to manage its cash resources carefully, with a focus on advancing its clinical programs and maintaining its operational capabilities. Looking ahead, Vistagen anticipates that its operating losses will persist as it continues to invest in the development of its product candidates, with plans to seek additional financing to support its operations and growth initiatives.