Palisade Bio (PALI) Q4 2025 earnings summary

Executive summary

• Clinical-stage biopharma focused on next-generation, once-daily oral PDE4 inhibitor prodrugs for IBD, with lead candidate PALI-2108 targeting ulcerative colitis (UC) and Crohn's disease (CD).

• Positive Phase 1 trial results for PALI-2108 in UC; all five UC patients responded to treatment, meeting safety, tolerability, and PK endpoints.

• Exploratory Phase 1b in fibrostenotic Crohn's disease (FSCD) initiated; Phase 2 studies in UC and CD planned for 2026.

• Raised $127.6 million in October 2025 public offering, providing runway through major clinical milestones.

Financial highlights

• Operating loss for 2025 was $18.1 million, up 22% year-over-year, driven by increased R&D and G&A expenses.

• Net loss for 2025 was $16.8 million, compared to $14.4 million in 2024.

• R&D expenses rose 12% to $10.2 million, mainly due to increased clinical trial and employee costs.

• G&A expenses increased 36% to $7.9 million, primarily from higher compensation and professional fees.

• Cash, cash equivalents, and restricted cash totaled $133.4 million at year-end 2025.

Outlook and guidance

• Sufficient capital to fund operations through Phase 2 efficacy readouts for PALI-2108 in UC (expected H2 2027) and CD (expected 2028).

• Anticipates increased R&D spending in 2026 as clinical programs advance.

• Additional funding will be required for Phase 3 trials and commercialization beyond 2028.