XBiotech Reports $10.9 Million Net Loss in Q1 2025, Cash Reserves Decrease

XBiotech Inc. reported a net loss of $10.9 million for the first quarter of 2025, compared to a loss of $10.0 million in the same period of the previous year. The company's total operating expenses increased to $13.6 million from $10.9 million year-over-year, driven primarily by higher research and development costs, which rose to $11.6 million from $9.8 million. The increase in research expenses was largely attributed to a significant bonus awarded to the Chief Executive Officer, which accounted for a substantial portion of the R&D expenses. The company did not generate any revenue during this period, and it anticipates continued operating losses as it advances its drug candidates through clinical trials.

In terms of financial position, XBiotech's cash and cash equivalents decreased to $155.9 million as of March 31, 2025, down from $201.0 million a year earlier. The decline in cash was primarily due to net cash used in operating activities, which amounted to $6.7 million for the quarter. The company also reported a decrease in total liabilities, which fell to $7.2 million from $16.8 million at the end of 2024, reflecting the repayment of a convertible loan. Shareholders' equity decreased to $174.7 million from $182.3 million, primarily due to the net loss incurred during the quarter.

XBiotech's operational metrics indicate a focus on advancing its True Human™ monoclonal antibody pipeline. The company maintained a workforce of 90 employees as of the end of the quarter. The increase in general and administrative expenses to $1.9 million from $1.0 million was also influenced by the CEO's bonus and stock-based compensation. The company has not reported any new product launches or acquisitions during this period, but it continues to develop its existing product candidates, including those targeting interleukin-1 alpha (IL-1a).

Looking ahead, XBiotech expects to incur significant and increasing operating losses as it continues its research and development efforts. The company does not anticipate generating revenue in 2025 and acknowledges the need for substantial funding to support its clinical operations. XBiotech's management believes that its current cash reserves will be sufficient to fund operations for at least the next 12 months, allowing it to reach several key milestones in its clinical studies. The company remains focused on advancing its drug candidates through the necessary regulatory approvals and clinical trials, despite the inherent risks and uncertainties associated with its business model.