Pasithea Therapeutics Reports $13.9 Million Net Loss for Fiscal Year 2024

Pasithea Therapeutics Corp. has reported its financial results for the fiscal year ending December 31, 2024, revealing a net loss of approximately $13.9 million, a decrease from a net loss of $15.9 million in the previous year. The company’s total revenue remains negligible, as it has not yet commercialized any products. The decrease in net loss reflects a reduction in operating expenses, which totaled $14.2 million for 2024, down from $16.0 million in 2023. This decline was primarily driven by lower research and development costs, which fell by 11.1% to $7.2 million, and a 10.5% decrease in general and administrative expenses to $7.1 million.

In terms of operational changes, Pasithea has streamlined its focus by discontinuing its support services to anti-depression clinics in the U.K. and New York, as well as ceasing clinical operations in Los Angeles. This strategic pivot has resulted in the company concentrating solely on its therapeutics segment, which includes the development of its lead product candidate, PAS-004, a next-generation MEK inhibitor. The FDA cleared the Investigational New Drug application for PAS-004 in December 2023, allowing the company to proceed with its first-in-human Phase 1 multicenter, open-label trial, which is currently ongoing at multiple sites in the U.S. and Eastern Europe.

As of December 31, 2024, Pasithea reported current assets of approximately $7.4 million, a significant decrease from $16.7 million in the previous year, largely due to cash used in operations. The company’s working capital also decreased to $6.2 million from $14.1 million. The firm had cash and cash equivalents of about $6.9 million at year-end, indicating a need for additional capital to sustain operations and fund ongoing clinical trials. The company has indicated that it will require further funding, potentially through equity or debt offerings, to continue its development plans.

Looking ahead, Pasithea anticipates an increase in research and development expenses in 2025 as it advances PAS-004 through clinical trials, particularly with the upcoming Phase 1/1b trial in adult patients with neurofibromatosis type 1 (NF1). The company is also exploring additional formulations and indications for PAS-004, which may broaden its therapeutic applications. However, the ongoing need for capital raises concerns about the company’s ability to maintain operations without securing additional funding in the near term.

Overall, while Pasithea Therapeutics is making progress in its clinical development efforts, the financial results highlight the challenges faced by clinical-stage biotechnology companies, including the need for substantial capital and the inherent risks associated with drug development.