Cocrystal Pharma Reports $17.5 Million Net Loss and Declining Cash Position for Fiscal Year 2024

Cocrystal Pharma, Inc. reported a net loss of $17.5 million for the fiscal year ending December 31, 2024, a slight improvement from the $17.98 million loss recorded in the previous year. The company's total operating expenses decreased to $17.88 million from $18.56 million in 2023, primarily due to reduced research and development costs, which fell to $12.54 million from $15.17 million. The decrease in expenses reflects the timing of clinical study costs, particularly related to the ongoing Phase 2a clinical trial for its influenza candidate, CC-42344.

The company’s cash position has significantly declined, with cash and restricted cash totaling approximately $9.9 million as of December 31, 2024, down from $26.4 million a year earlier. This decline raises concerns about the company's ability to fund operations over the next 12 months, as it anticipates continued operating losses. Cocrystal Pharma has indicated the need for additional financing to support its research and development efforts, particularly as it progresses through clinical trials.

Strategically, Cocrystal has made notable advancements in its product pipeline. The company is developing CC-42344, a novel PB2 inhibitor for treating influenza, which has shown promising antiviral activity against various strains, including those resistant to existing treatments. The UK Medicines and Healthcare Products Regulatory Agency authorized a Phase 2a human challenge study for CC-42344, with enrollment expected to be extended due to low infection rates among participants. Additionally, the company is advancing CDI-988, a protease inhibitor targeting noroviruses and coronaviruses, which is currently undergoing a Phase 1 clinical trial in Australia.

Operationally, Cocrystal has maintained a small workforce, employing 11 full-time staff as of December 31, 2024, with eight dedicated to clinical advancement and research. The company has also terminated its collaboration agreement with Merck, which was effective March 14, 2024, due to the inability to develop compounds to meet specific program requirements. This decision, along with the termination of license agreements with Kansas State University, reflects a strategic pivot as Cocrystal focuses on its internal development capabilities.

Looking ahead, Cocrystal Pharma faces significant challenges, including the need for additional capital to sustain operations and the competitive landscape of antiviral drug development. The company has not yet generated revenue from product sales and continues to rely on external financing to support its clinical programs. The management has expressed optimism about the potential of its product candidates but acknowledges the inherent risks and uncertainties associated with drug development and regulatory approval processes.