X4 Pharmaceuticals Reports $28.8 Million Revenue and Net Income Turnaround in Latest Quarter

X4 Pharmaceuticals, Inc. reported a significant financial turnaround in its latest quarterly results, with total revenue reaching $28.8 million for the three months ended March 31, 2025, compared to no revenue in the same period last year. This revenue was primarily driven by a $27.6 million upfront payment from a licensing agreement with Norgine Pharma UK, alongside $0.9 million from product sales of its approved drug, XOLREMDI, which is used to treat WHIM syndrome. The company’s net income for the quarter was $282,000, a stark contrast to a net loss of $51.8 million in the first quarter of 2024.

The company’s operating expenses increased slightly to $38.2 million from $37.3 million year-over-year, with research and development costs decreasing to $18.5 million from $19.9 million, reflecting a strategic focus on advancing its lead product, mavorixafor. Selling, general, and administrative expenses also saw a reduction, down to $15 million from $17.4 million, attributed to decreased compensation expenses and lower commercialization costs following the product launch.

In terms of operational developments, X4 Pharmaceuticals has made significant strides in its commercialization strategy for XOLREMDI, which was launched in May 2024. The company has engaged with healthcare providers and patient advocacy groups to enhance awareness and access to the drug. Additionally, X4 has expanded its geographic reach by filing for regulatory approval in the European Union and entering into distribution agreements in the Middle East and North Africa. The company is also actively enrolling participants in a pivotal Phase 3 clinical trial for mavorixafor, which aims to evaluate its efficacy in chronic neutropenia.

Despite these advancements, X4 Pharmaceuticals faces ongoing financial challenges, with an accumulated deficit of $515.1 million as of March 31, 2025. The company reported cash and cash equivalents of $40.3 million, down from $55.7 million at the end of 2024, raising concerns about its liquidity and ability to meet its operational needs. The company has a Minimum Cash Covenant under its Hercules Loan Agreement, requiring it to maintain at least $15 million in cash, which it may struggle to meet without additional capital. X4 Pharmaceuticals has indicated that it will need to raise further funds to support its operations and continue its development programs, which may include equity offerings or other financing arrangements.

Looking ahead, X4 Pharmaceuticals remains focused on the successful commercialization of XOLREMDI and the advancement of its clinical programs. The company anticipates that the strategic restructuring implemented in early 2025 will reduce annual spending by $30 to $35 million, providing a more sustainable financial path. However, the company acknowledges the inherent risks and uncertainties in achieving its operational goals and maintaining compliance with its financial covenants.