X4 Pharmaceuticals Reports Revenue Growth but Faces Significant Financial Challenges

X4 Pharmaceuticals, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded total revenue of $1.97 million for the quarter, a substantial increase from $563,000 in the same period last year. This growth was primarily driven by product revenue from its recently launched drug, XOLREMDI, which generated $1.74 million in net sales. However, despite this increase, X4 Pharmaceuticals reported a net loss of $25.74 million for the quarter, compared to a net income of $90.83 million in the prior year, which included a one-time gain from the sale of a Priority Review Voucher.

In terms of operational changes, X4 Pharmaceuticals has undergone a strategic restructuring aimed at focusing its resources on the commercialization of XOLREMDI and advancing its clinical programs. This restructuring included a workforce reduction of approximately 30%, which is expected to decrease annual spending by $30 to $35 million. The company also announced a reverse stock split of 1-for-30, effective April 28, 2025, to comply with Nasdaq listing requirements and improve its capital structure.

The company’s cash position has also seen a decline, with cash and cash equivalents dropping to $39.22 million as of June 30, 2025, down from $55.70 million at the end of 2024. X4 Pharmaceuticals has an accumulated deficit of $540.81 million and has indicated that it may not have sufficient funds to support its operations for the next 12 months without raising additional capital. The company is currently subject to a Minimum Cash Covenant under its Hercules Loan Agreement, which requires maintaining a minimum cash balance of $15 million.

X4 Pharmaceuticals is actively pursuing regulatory approvals for XOLREMDI in international markets, including a submission to the European Medicines Agency (EMA) for commercialization in the European Union. The company has also entered into a License and Supply Agreement with Norgine Pharma UK, which grants Norgine exclusive rights to distribute and market XOLREMDI in several territories, including the UK and Australia. The company is currently conducting a pivotal Phase 3 clinical trial for mavorixafor, the active ingredient in XOLREMDI, to evaluate its efficacy in treating chronic neutropenia.

Looking ahead, X4 Pharmaceuticals faces significant risks, including the need for additional funding to continue operations and meet its financial covenants. The company has acknowledged that it may need to delay or reduce its research and development programs if it cannot secure the necessary capital. The outlook remains uncertain as the company navigates its financial challenges while attempting to establish a foothold in the biopharmaceutical market with its lead product.