Thu, Aug 15, 10:00 AM (152 days ago)
Traws Pharma, Inc. reported significant financial challenges for the quarter ending June 30, 2024, with a net loss of $123.1 million, a drastic increase from $4.3 million in the same quarter of 2023. This loss was primarily attributed to a non-cash expense of $117.5 million related to acquired in-process research and development (IPR&D) from the acquisition of Trawsfynydd Therapeutics. Revenue remained stable at $57,000, reflecting ongoing collaboration with SymBio. Operating expenses surged to $123.4 million, up from $4.7 million, driven by the IPR&D charge and increased R&D costs. Cash and equivalents decreased to $16.9 million, raising concerns about the company's ability to sustain operations beyond Q4 2024 without additional financing. Traws Pharma has indicated substantial doubt regarding its ability to continue as a going concern, necessitating exploration of various funding sources. The company also faces potential liquidity issues due to a requirement for shareholder approval to convert Series C Preferred Stock, which could lead to cash redemptions if not approved. Overall, Traws Pharma's financial health reflects significant operational and strategic uncertainties following the recent merger.