Traws Pharma, Inc. (formerly Onconova Therapeutics, Inc.) reported significant financial changes in its latest 10-Q filing for the period ending September 30, 2024. The company, which focuses on developing treatments for respiratory viral diseases and cancer, experienced a substantial increase in net losses, reporting $(136.6 million) for the nine months ended September 30, 2024, compared to $(14.8 million) for the same period in 2023. This increase is largely attributed to a non-cash in-process research and development expense of $117.5 million related to the acquisition of Trawsfynydd Therapeutics, Inc. on April 1, 2024.

Total operating expenses for the nine months ended September 30, 2024, surged to $137.3 million, a dramatic rise from $16.0 million in the prior year. Research and development expenses increased by 22% to $11.0 million, driven by consulting fees and personnel costs associated with the newly acquired virology programs. General and administrative expenses also rose by 26% to $8.8 million, primarily due to increased consulting fees and restructuring costs.

The company’s revenue remained relatively stable, with total revenues of $170,000 for the nine months ended September 30, 2024, unchanged from the previous year. The revenue is primarily derived from a collaboration agreement with SymBio, with deferred revenue recognition impacting reported figures.

As of September 30, 2024, Traws Pharma reported cash and cash equivalents of $5.4 million, a significant decrease from $20.8 million at the end of 2023. The company anticipates that its current cash reserves will only fund operations into the first quarter of 2025, raising substantial doubt about its ability to continue as a going concern for the next 12 months. The company is actively exploring various funding sources to support ongoing clinical trials and operations.

In terms of corporate governance, Traws Pharma underwent a significant restructuring, terminating 11 of its 17 employees in April 2024 to conserve cash. The company also faced compliance challenges with Nasdaq, having received notifications regarding non-compliance with minimum stockholders’ equity and bid price requirements. However, it regained compliance with the bid price requirement on October 29, 2024.

The merger with Trawsfynydd has positioned Traws Pharma to advance multiple clinical programs, including TRX01 for COVID-19 and TRX100 for influenza, while also facing the complexities of integrating the two companies. The company’s future success will depend on its ability to secure additional funding and effectively manage the integration process.