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Grace Therapeutics Q2 net loss widens on higher R&D costs

By Reuters News


Overview

  • US biopharma firm's Q2 net loss widened yr/yr due to higher R&D and no warrant gain

  • Company completed $10 mln private placement, extending cash runway through end of 2028

  • Grace advancing dual-source manufacturing and NDA resubmission for GTx-104 after FDA feedback


Outlook

  • Company expects NDA resubmission timing to depend on manufacturing site readiness

  • Grace Therapeutics says recent financing extends cash runway through end of calendar 2028

  • Company plans to use cash to address FDA CRL items and general corporate purposes


Result Drivers

  • R&D SPENDING - Higher research and development expenses due to dual-source manufacturing activities and required non-clinical studies for GTx-104

  • NO WARRANT GAIN - Absence of favorable change in fair value of derivative warrant liabilities compared to prior-year quarter

  • LOWER ADMIN COSTS - General and administrative expenses decreased, mainly due to reduced legal fees, pre-commercial planning, and salaries


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Loss Per Share

$0.11


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the biotechnology & medical research peer group is "buy"

  • Wall Street's median 12-month price target for Grace Therapeutics, Inc is $6.00, about 223.5% above its November 11 closing price of $1.86


Reuters Recommended Reads

  • Nov 12 - Taysha Gene Therapies Q3 net loss widens on higher R&D costs

  • Nov 10 - Tyra Biosciences Q3 net loss widens on higher R&D costs

  • Nov 9 - Structure Therapeutics Q3 loss widens on higher R&D costs


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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