Executive Summary / Key Takeaways

• Liminatus Pharma ($LIMN) is a pre-clinical biopharmaceutical company focused on developing IBA101, a humanized anti-CD47 monoclonal antibody for advanced solid cancers, aiming to restore anti-tumor function without inducing hemagglutination or hemolysis.
• The company recently completed a Business Combination and Nasdaq listing, securing $15.00 million in PIPE financing and converting $14.80 million in related party debt, but faces significant liquidity challenges with a going concern warning.
• Liminatus is actively pursuing novel capital strategies, including exploring digital asset-linked financing, to fund its critical R&D and operational needs, signaling a proactive approach to its financial sustainability.
• Despite its innovative technology and focused R&D, Liminatus operates as a niche player against large pharmaceutical giants, necessitating successful clinical translation and robust financing to establish market presence and competitive differentiation.
• Key risks include substantial doubt about its ability to continue as a going concern, potential shareholder dilution, and recent Nasdaq non-compliance, underscoring the high-risk, high-reward nature of this early-stage biotech investment.

Unlocking Immuno-Oncology's Next Frontier with CD47 Innovation

Liminatus Pharma, Inc. ($LIMN) stands at the forefront of pre-clinical biopharmaceutical innovation, dedicated to developing novel, immune-modulating cancer therapies. The company's central focus is its lead candidate, IBA101, a humanized anti-CD47 monoclonal antibody. This "next generation CD47 checkpoint inhibitor" is being developed with an initial indication targeting patients with advanced solid cancers, including non-small cell lung cancer. The promise of IBA101 lies in its potential to block CD47-SIRPα interactions, thereby restoring the anti-tumor function of innate immune cells, critically "without inducing hemagglutination or hemolysis." This technological differentiation, if successfully translated to the clinic, could offer a significant advantage over earlier CD47 inhibitors that faced challenges with hematological toxicities.

The immuno-oncology market, where Liminatus seeks to establish its foothold, is a fiercely competitive landscape dominated by pharmaceutical behemoths such as Bristol-Myers Squibb ($BMY), Merck & Co. ($MRK), AstraZeneca ($AZN), and Roche ($RHHBY). These established players boast extensive pipelines, vast financial resources, and global commercial infrastructures. Liminatus, as a pre-clinical stage company, operates as a niche player with a comparatively smaller market presence. Its competitive strategy hinges on its agility in innovation and a focused R&D approach, aiming to carve out a specialized segment within this high-stakes arena. While larger competitors benefit from diversified portfolios and robust cash flow generation, Liminatus's potential lies in its ability to deliver "qualitatively superior targeting of cancer cells" and "more efficient therapies" through its specific technological advancements, potentially leading to "stronger customer loyalty through better outcomes" and "higher pricing power" upon commercialization.

The company's journey began in 2018, initially exploring CAR-T and vaccine product licenses. However, a strategic pivot solidified its focus on the CD47 pathway, acquiring an exclusive license for CD47 immune checkpoint inhibitor products in March 2023. This strategic refinement underscores Liminatus's commitment to its current core technology. The broader industry is also witnessing a significant trend towards integrating advanced computational tools, with the "AI and data center explosion" driving demand for processing power. This trend could indirectly benefit Liminatus by accelerating R&D through enhanced computational biology and drug discovery capabilities, potentially positioning it "better for innovation" compared to some rivals.

Financial Performance and Liquidity Challenges

Despite its scientific aspirations, Liminatus's financial performance reflects its early-stage nature and the significant capital demands of biopharmaceutical development. For the three and six months ended June 30, 2025, the company reported no revenue, a common characteristic of pre-clinical biotechs. Operating expenses saw notable shifts. General and administrative expenses surged by $923,127 to $1.12 million for the three months ended June 30, 2025, and by $1.09 million to $1.38 million for the six months ended June 30, 2025, primarily due to increased accounting and legal costs associated with its recent Business Combination. Conversely, research and development expenses decreased significantly, falling by $714,134 to $0 for the three months ended June 30, 2025, and by $2.33 million to $0 for the six months ended June 30, 2025. This reduction was a direct result of the termination of its CAR-T and Vaccine license agreements with Targeted Diagnostics Therapeutics, Inc. (TDT) in August 2024, which subsequently led to a $2.14 million gain from the settlement of TDT's payables in the first half of 2025.

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The financial results for the first half of 2025 also included a net loss of $214,239, a substantial improvement from the $2.72 million net loss reported in the same period of 2024. This improvement was largely driven by the TDT settlement gain, which offset other expenses including $177,800 in interest expense on related party promissory notes and unrealized losses of $756,000 on deferred underwriting fee common stock payable and $116,894 on warrant liabilities. As of June 30, 2025, Liminatus carried an accumulated deficit of $28.88 million, underscoring the historical investment required for its drug development efforts.

Liminatus's liquidity position is a critical concern for investors. As of June 30, 2025, the company held $1.34 million in cash. This limited cash balance, coupled with ongoing operating losses, has led management to conclude that "there is substantial doubt about its ability to continue as a going concern within one year" from the financial statements' issuance date. This stark assessment highlights the urgent need for additional capital.

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The company's recent Business Combination, consummated on April 30, 2025, was a significant financing event. It included a Private Investment in Public Equity (PIPE) financing that raised $15.00 million through the issuance of 1.50 million shares, comprising both cash proceeds and the conversion of related party debts. Furthermore, $14.80 million of related party debt was converted into common stock. While these actions provided a capital infusion, the company's net cash used in operating activities for the six months ended June 30, 2025, increased by $7.87 million to $8.98 million, primarily due to the payment of accounts payable and settlement of related party amounts. Net cash provided by financing activities, however, saw an $8.79 million increase to $11.03 million in the same period, reflecting the PIPE proceeds.

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Strategic Capital Initiatives and Outlook

In a proactive move to address its capital needs, Liminatus announced on July 24, 2025, an engagement with Digital Offering LLC to explore a strategic capital raise, including a "digital asset treasury strategy". CEO Chris Kim emphasized, "Partnering with Digital Offering allows us to explore strategic funding opportunities—both in traditional markets and the evolving digital asset landscape—with discipline and foresight". This initiative signals a willingness to embrace modern financial tools to strengthen its capital structure, potentially involving convertible debentures, equity-linked securities, or other alternative instruments.

The company's outlook is entirely dependent on its ability to successfully develop commercial products from its intellectual property. Management expects to continue incurring significant operating losses for the foreseeable future, and there is no assurance of future profitability. The ability to raise adequate capital under acceptable terms remains a key uncertainty.

Investment Risks and Competitive Landscape

Investing in Liminatus Pharma carries inherent risks typical of a pre-clinical biopharmaceutical company. The most immediate and significant risk is the "substantial doubt about its ability to continue as a going concern" within the next year. The company explicitly states, "There can be no assurance that the Company will be able to raise adequate capital under acceptable terms, if at all". Failure to secure additional financing would necessitate a reevaluation of future operations.

Further, any future equity financings, while crucial for survival, "may dilute existing members and newly issued equity securities may contain senior rights and preferences compared to currently outstanding common stock". Similarly, "issued debt securities may contain covenants and limit the Company's ability to pay dividends or make other distributions to stockholders". Operational risks also persist, particularly the fundamental uncertainty of whether its intellectual property, IBA101, will successfully develop into commercial products.

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Adding to these challenges, Liminatus received a notice from Nasdaq on August 22, 2025, regarding non-compliance with listing rules due to a delayed 10-Q filing. While this has no immediate effect on its listing, the company has until October 21, 2025, to submit a compliance plan. Management has also identified material weaknesses in its internal control over financial reporting, citing a lack of formalized control environment and inadequate segregation of duties, though remediation efforts are underway.

In the competitive arena, Liminatus's current financial metrics, such as its 0% gross, operating, net, and EBITDA margins, and a current ratio of 0.17, starkly contrast with the established profitability and robust financial health of industry leaders like Roche ($RHHBY), which reported a gross profit margin of 0.74 and a current ratio of 1.48 in 2024. While Liminatus aims for "focused innovation speed," it lags in "profitability, efficiency, and market positioning" compared to these larger, more diversified entities. Its clinical-stage status also implies "materially higher R&D costs and longer timelines," which could severely impact financial performance and market share against competitors with more efficient processes and established product pipelines.

Conclusion

Liminatus Pharma ($LIMN) presents a high-risk, high-reward investment proposition centered on its innovative pre-clinical anti-CD47 monoclonal antibody, IBA101. The company's strategic focus on this next-generation immunotherapy, designed to overcome limitations of prior CD47 inhibitors, represents its core value driver and technological edge in a competitive immuno-oncology market. While Liminatus operates as a nimble niche player against well-capitalized pharmaceutical giants, its ability to translate its differentiated technology into clinical success and ultimately commercial products is paramount.

The recent Business Combination and PIPE financing have provided some capital, but the company's precarious liquidity position and the explicit going concern warning underscore the critical need for further funding. Its proactive exploration of digital asset-linked capital strategies highlights a creative approach to securing the necessary resources for its ambitious R&D pipeline. For investors, the narrative hinges on Liminatus's capacity to effectively execute its capital strategy, advance IBA101 through clinical trials, and ultimately demonstrate the tangible benefits of its technology, thereby transforming its pre-clinical promise into a sustainable commercial reality.