IRulya Therapeutics (QNCX) Q2 2026 earnings summary

Executive summary

• Completed acquisition of Orphai Therapeutics, bringing LAM-001, an inhaled rapamycin formulation for severe pulmonary disorders, as the new lead asset.

• Discontinued development of eDSP after Phase 3 NEAT trial failed to meet endpoints, resulting in significant impairment charges.

• Raised $115M in upfront proceeds via private placement, with potential for up to $83M more from warrant exercises.

• Cash and cash equivalents at June 30, 2026 were $116.0M, expected to fund operations through 2028.

Financial highlights

• Net loss for Q2 2026 was $75.5M, or $12.31 per share, compared to $16.0M, or $68.75 per share, in Q2 2025.

• Operating expenses surged to $79.8M in Q2 2026, driven by $59M acquired in-process R&D and $67.8M intangible asset impairment.

• R&D expenses for Q2 2026: $5.5M, down year-over-year due to eDSP wind-down; G&A expenses rose to $16.6M, up 397%, mainly from stock-based compensation and acquisition costs.

• Total assets were $143.8M and total liabilities $35.3M as of June 30, 2026.

• Cash and cash equivalents at June 30, 2026 were $116.0M, up from $16.8M at year-end 2025.

Outlook and guidance

• LAM-001 Phase 2b trial in PH-ILD ongoing, with data expected Q1 2028; Phase 2 BOS trial results anticipated Q1 2027; Phase 2 SAPH trial to begin late 2026 with data in Q4 2028.

• Company expects continued operating losses and increased expenses as clinical programs advance.

• Cash runway expected to fund operations through the end of 2028.

• Substantial doubt remains about ability to continue as a going concern due to conditionality of Series C Preferred Stock conversion and potential cash settlement obligations.