Fri, Sep 20, 8:32 PM (91 days ago)
PaxMedica, Inc. reported significant financial challenges in its Q2 2024 results, with an accumulated deficit of approximately $58.7 million and a net loss of $6.7 million for the six months ended June 30, 2024, compared to a net loss of $7.3 million in the same period of 2023. Total operating expenses decreased to $6.7 million from $7.4 million year-over-year, primarily due to reduced general and administrative costs, particularly in stock compensation. Cash reserves dwindled to $324,486 by the end of Q2 2024, down from $4.7 million at year-end 2023, leading to concerns about the company's ability to sustain operations without additional financing. The company has not generated any product revenue and anticipates ongoing financial losses as it develops its lead candidate, PAX-101. PaxMedica's future capital requirements remain uncertain, hinging on clinical trial outcomes and regulatory approval processes. The firm has suspended trading on Nasdaq and is now listed on the OTC Pink Market, complicating its fundraising efforts. The company must secure substantial financing to continue its operations and product development.