Processa Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company focused on developing Next Generation Chemotherapy (NGC) drugs, reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a net loss of $3.4 million for the third quarter, an increase from a net loss of $2.1 million in the same period in 2023. For the nine months ended September 30, 2024, the net loss totaled $9.1 million, compared to $8.7 million for the same period in the previous year.
Research and Development (R&D) expenses rose sharply, with Q3 2024 expenses reaching $2.3 million, up from $1.2 million in Q3 2023. For the nine-month period, R&D expenses increased to $5.6 million from $4.5 million in 2023. The increase in R&D costs is attributed to the transition from Phase 1B to Phase 2 trials for the NGC-Cap drug, which began dosing patients on October 2, 2024.
Total assets decreased to $4.9 million as of September 30, 2024, down from $5.8 million at the end of 2023. Cash and cash equivalents also fell significantly, from $4.7 million at the end of 2023 to $2.9 million. The company’s total liabilities increased to $1.2 million, compared to $797,484 at the end of the previous fiscal year, while total stockholders' equity decreased to $3.7 million from $5.0 million.
Processa has not generated any product revenue to date and continues to rely on financing activities to support its operations. The company raised net proceeds of $6.3 million from a public offering on January 30, 2024, and an additional $931,000 from an ATM offering in July 2024. The company has filed a registration statement for an aggregate offering of up to $50 million in securities, indicating ongoing efforts to secure funding for its clinical trials and operational needs.
The company’s accumulated deficit reached $84.5 million as of September 30, 2024. Processa's strategic focus remains on advancing its drug pipeline, which includes three NGC drugs aimed at improving the safety and efficacy of existing chemotherapy treatments. The company is also exploring partnerships for its non-oncology drugs and evaluating options to monetize non-core assets.
About Processa Pharmaceuticals, Inc.
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