VivoSim Labs, Inc. reported a total revenue of $0.1 million for the fiscal year ending March 31, 2026, consistent with the previous year. The revenue primarily stemmed from sales-based royalties related to licensing intellectual property, while product revenue from its former Mosaic division ceased following its closure in the third quarter of fiscal 2025. The company experienced a significant decrease in operating expenses, with research and development costs dropping by 17% to approximately $4.2 million, attributed to a reduction in personnel and material costs. Selling, general, and administrative expenses also decreased by 4% to about $7.4 million, reflecting lower headcount and reduced legal and corporate costs.
In March 2025, VivoSim sold its FXR program to Eli Lilly and Company for $10 million, with potential milestone payments of up to $50 million. The company received a $5 million milestone payment in July 2026, marking a strategic shift from its previous focus on clinical-stage biotechnology to offering services in drug testing using three-dimensional human tissue models. This transition aligns with anticipated regulatory changes favoring non-animal testing methods, which VivoSim aims to capitalize on by providing bespoke toxicology insights to pharmaceutical partners.
As of March 31, 2026, VivoSim reported total current assets of approximately $6.6 million and current liabilities of about $2.8 million, resulting in working capital of $3.8 million. The company has faced ongoing liquidity challenges, with negative cash flows from operations amounting to $10.8 million for the year. Management has expressed substantial doubt about the company's ability to continue as a going concern without additional funding, which is critical for sustaining operations and executing its strategic plans.
VivoSim's workforce has also seen a reduction, with 15 employees reported as of June 1, 2026, down from previous years. The company is focusing on expanding its service offerings in liver and intestinal toxicology, leveraging its proprietary 3D tissue models. The firm anticipates that these models will enhance drug development processes and reduce the costs associated with bringing new therapeutics to market. However, the company acknowledges the need for substantial additional funding to support its operations and growth initiatives moving forward.
Looking ahead, VivoSim aims to establish strategic partnerships with pharmaceutical companies to enhance its service model and drive revenue growth. The company is also exploring opportunities for geographic expansion and increased product adoption rates. Despite the challenges, VivoSim's management remains optimistic about the potential for its innovative technologies to transform drug testing and development, contingent upon securing the necessary funding and navigating the evolving regulatory landscape.
About VivoSim Labs, INC.
VivoSim Labs, Inc. specializes in providing testing services using 3D human tissue models of liver and intestine for drug safety and toxicology assessment. The company develops and offers bespoke toxicology insights, supporting pharmaceutical and biotech clients throughout drug development. Leveraging proprietary bioprinting and tissue engineering technologies, VivoSim aims to reduce drug development risks and costs, with a focus on non-animal testing methodologies and advanced disease models.
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