XBiotech Reports $38.5 Million Net Loss for Fiscal Year Ending December 31, 2024

XBiotech Inc. reported a net loss of $38.5 million for the fiscal year ending December 31, 2024, an increase from a net loss of $24.6 million in the previous year. The company's accumulated deficit now stands at $90.8 million. Total operating expenses rose to $42.5 million, up from $37.5 million in 2023, primarily driven by increased research and development costs, which accounted for approximately 89% of total operating expenses. Research and development expenses increased by 15% to $37.8 million, attributed to higher salaries and clinical trial costs, as the company expanded its workforce from 79 to 89 employees.

In terms of revenue, XBiotech has not generated any product sales to date, relying instead on past agreements, including a clinical manufacturing contract with Janssen Biotech, which concluded in November 2022. The company received $675 million from the sale of its True Human™ antibody, Bermekimab, in 2019, and has since returned $495 million to shareholders through stock repurchases and dividends. However, no milestone payments from the Janssen transaction have been realized as of December 31, 2024.

Strategically, XBiotech has focused on developing its pipeline of True Human™ monoclonal antibodies, particularly those targeting interleukin-1 alpha (IL-1a), which is implicated in various diseases. The company has initiated clinical studies for new product candidates in oncology and rheumatology, including a Phase I study for a candidate aimed at reducing brain injury post-stroke. Despite these advancements, the company has faced challenges, including enrollment irregularities in its rheumatology program, which have rendered some data uninterpretable.

Looking ahead, XBiotech anticipates continued operating losses as it progresses its clinical programs. The company has approximately $172.7 million in cash and cash equivalents as of December 31, 2024, which it believes will be sufficient to fund operations for at least the next 12 months. However, the company does not expect to generate revenue until it successfully commercializes its product candidates, which remains contingent on obtaining regulatory approvals. The management has indicated that it will continue to evaluate its pipeline and may require additional funding to support its development activities.