OS Therapies Inc. (OSTX) announced on November 20, 2025 that it will spin off its wholly‑owned subsidiary, OS Animal Health, Inc. (OSAH), into a separate public company. The move is intended to give the animal‑health program dedicated financing and focus, with a U.S. national stock‑exchange listing planned for the first half of 2026.
OSAH is developing OST‑HER2, an off‑the‑shelf immunotherapy for canine osteosarcoma that has received conditional approval from the U.S. Department of Agriculture. The veterinary oncology market is projected to reach $4.77 billion by 2034, and the U.S. addressable opportunity for OST‑HER2 in canine osteosarcoma exceeds $150 million. By separating the animal‑health business, OS Therapies aims to unlock value for shareholders and allow OSAH to pursue its own growth trajectory without the constraints of a clinical‑stage biotech parent.
In its most recent quarterly report, OS Therapies reported a net loss of $0.21 per share for Q3 2025, compared with a $0.18 loss in Q3 2024. Operating loss rose to $6.879 million from $2.875 million in the prior year, reflecting increased pre‑payments for regulatory and pre‑commercial activities. The company remains pre‑revenue, with revenue expected to arise from the sale of a Priority Review Voucher and licensing rights once OST‑HER2 receives full approval.
The spin‑off is a strategic effort to unlock shareholder value. Shareholders will receive direct equity participation in OSAH, and the standalone entity will have the flexibility to raise capital, form partnerships, and accelerate commercialization of OST‑HER2. For OS Therapies, the divestiture frees management to focus on its core oncology pipeline for human treatments, while the animal‑health division can pursue dedicated financing and operational focus.
Paul Romness, Chairman and CEO of OS Therapies, said the next six to twelve months would be transformative for the company, noting that the company has engaged key opinion leaders, regulatory experts, and potential investors to support the standalone venture. Edward Robb, DVM and animal‑health strategic advisor, added that the animal‑health program will be housed in a standalone venture and that OST‑HER2 has the potential to become a significant player in the growing veterinary oncology market.
Investors welcomed the announcement, citing the strategic focus and potential for value creation as key drivers of the positive reception.
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