Edesa Biotech, Inc. (Nasdaq: EDSA) reported a fiscal‑year 2025 net loss of $7.2 million, or $1.27 per share, for the year ended September 30, 2025. Operating expenses rose to $7.9 million, up $0.9 million from $7.0 million in the prior year, while other income fell to $0.7 million from $0.8 million, largely due to a decline in interest income offset by higher Canadian government grant income. The company’s cash and cash equivalents stood at $10.8 million at year‑end, a decline from $13.9 million reported in March 2025, but still sufficient to fund ongoing clinical development through the end of fiscal 2026. Edesa also raised $3.4 million through an at‑the‑market offering of common shares during the year, further bolstering its liquidity position.
The widening net loss reflects intensified investment in the company’s core programs. R&D spending for EB06, the anti‑CXCL10 monoclonal antibody for vitiligo, increased as the company began manufacturing for its Phase 2 study, while operating expenses for EB05, the paridiprubart candidate for acute respiratory distress syndrome, fell as the program entered a U.S. government‑funded platform study that reduced direct costs. Compared with the prior year, the company’s operating expenses grew by 13%, and the decline in interest income contributed to the $0.1 million drop in other income. The company reported zero revenue for the year, consistent with its pre‑revenue, clinical‑stage status.
Cash reserves of $10.8 million, while lower than the $13.9 million reported earlier in the year, still provide a runway that extends through fiscal 2026. The at‑the‑market offering added $3.4 million, and the company’s Canadian government grant agreement continues to support the EB05 program. Management emphasized that the current cash position will sustain operations through FY2026, but additional funding will be required thereafter to maintain momentum in both programs.
Edesa’s pipeline remains focused on two high‑impact assets. EB06 is advancing toward an IND submission by the end of 2025, with manufacturing for the Phase 2 study underway. EB05 has recently completed a Phase 3 trial that demonstrated safety and efficacy in ARDS patients, and the company is now participating in a U.S. government‑funded study that further de‑risks the program and reduces the need for direct capital outlay. These milestones reinforce the company’s strategy of leveraging government support while accelerating clinical development.
Chief Executive Officer Par Nijhawan highlighted the company’s “high‑impact dermatology asset” and the “validated respiratory therapeutic” as key drivers of momentum. He noted that the company is “engaging with potential strategic and government partners to seek additional non‑dilutive support.” Chief Financial Officer Peter Weiler underscored the strengthened balance sheet and the importance of maintaining financial discipline as the company moves toward the Phase 2 vitiligo study and continues to benefit from the fully funded government study for EB05.
Edesa’s outlook remains cautious yet optimistic. While the cash runway extends through FY2026, the company’s need for additional funding beyond that period is a significant headwind. Management’s focus on securing strategic partnerships and leveraging government funding reflects a proactive approach to mitigating this risk. The company’s progress in both programs, coupled with its disciplined financial management, positions it to navigate the next phase of development while preparing for future capital needs.
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