Xilio Therapeutics Reports $2.93 Million Revenue and $13.27 Million Net Loss in Q1 2025

Xilio Therapeutics, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $2.93 million, primarily from collaboration and license agreements, a significant increase from zero revenue in the same period last year. The company’s net loss for the quarter was $13.27 million, an improvement compared to a net loss of $17.20 million in the first quarter of 2024. This reduction in losses was attributed to a decrease in operating expenses, which totaled $16.78 million, down from $17.49 million year-over-year.

The company’s operating expenses saw a notable decline in research and development costs, which fell to $8.27 million from $10.40 million in the previous year. This decrease was primarily due to reduced clinical development activities for certain product candidates. However, general and administrative expenses increased to $8.52 million from $6.14 million, driven by higher personnel-related costs and professional fees. Xilio also reported a restructuring expense of $0.95 million in the prior year, which was not present in the current quarter.

In terms of strategic developments, Xilio entered into a collaboration agreement with AbbVie in February 2025, which includes an upfront cash payment of $42 million and a $10 million equity investment. This agreement allows AbbVie to leverage Xilio's proprietary tumor-activation technology for up to four programs. Additionally, Xilio has a license agreement with Gilead Sciences for its IL-12 product candidate, XTX301, which has generated $55 million in payments to date. As of March 31, 2025, Xilio had cash and cash equivalents of $89.1 million, which it expects will fund operations into the first quarter of 2026.

Operationally, Xilio has made progress in its clinical trials, with vilastobart currently in a Phase 2 trial in combination with atezolizumab for metastatic colorectal cancer. The company is also advancing XTX301 in a Phase 1 trial. However, Xilio faces ongoing challenges, including the need for additional capital to support its operations and the potential for delays in clinical trials due to various factors, including regulatory requirements and patient enrollment issues.

Looking ahead, Xilio anticipates continued operating losses as it advances its product candidates through clinical trials. The company is exploring additional capital-raising strategies, including equity or debt financing and potential collaborations. However, there is substantial doubt about its ability to continue as a going concern if it cannot secure sufficient funding. The company’s management has indicated that it may need to implement cost reduction strategies if additional capital is not obtained in a timely manner.