Pulmatrix's Q2 2025 Financial Results and Strategy to Divest Inhalation Assets

Pulmatrix Reports Second Quarter 2025 Financial Outcomes and Future Plans

Pulmatrix, Inc., a biopharmaceutical leader, has shared its financial results for the second quarter of 2025, introducing important developments around its prospective merger with Cullgen. As it maneuvers through these changes, the company aims to capitalize on its proprietary inhalation technology, particularly the iSPERSE™ platform.

Financial Overview

Pulmatrix's financial performance in Q2 2025 showed a revenue decline, amounting to zero compared to the previous year, which stood at approximately $1.6 million. This significant drop can be attributed to the winding down of the PUR1900 Phase 2b clinical trial.

Research and Development (R&D) Costs

Research and development expenditures also saw a considerable reduction, plummeting by around $2.8 million to less than $0.1 million within the same timeframe. The company cited this decrease primarily to the completion of the PUR1900 trial and associated layoffs and lease cancellations.

Administrative Expenses

General administrative costs dropped to roughly $1.5 million from $2.0 million, largely due to decreased employment and operational expenditures, offset by expenses tied to the merger plans.

As of June 30, 2025, Pulmatrix's cash reserves stood at approximately $5.8 million, which, management believes, should provide adequate funding until the merger's anticipated closure, assuming efficient operational handling and cost prioritization.

Proposed Merger with Cullgen

Pulmatrix is on course for a merger with Cullgen, a company equipped with innovative approaches in developing targeted therapies for conditions like pain and cancer. The merger is set to close within 2025, contingent upon regulatory approvals, including the nod from Nasdaq and the China Security Regulatory Commission.

During Q2, regulatory processes advanced, with the SEC approving the registration statement for the merger while the stockholders of Pulmatrix endorsed the deal. This merger promises to transition Pulmatrix into a company focused on targeted protein degradation, creating a platform that includes three programs currently in Phase 1 clinical trials for cancer and pain treatment.

iSPERSE™ Technology and Asset Divestment

In conjunction with the merger, Pulmatrix is contemplating the divestment of its iSPERSE™ technology and three related clinical assets. The iSPERSE™ technology is noteworthy for its engineered particles designed to enhance drug delivery to the lungs, overcoming limitations seen in traditional powder medications. The potential transfer of these assets is part of a broader strategy to streamline operations and focus on high-value opportunities stemming from the merger.

Clinical Pipeline Highlights

1. PUR3100: An innovatively developed inhaled form of dihydroergotamine for treating acute migraines. This product has successfully secured FDA scrutiny, with a Phase 2 study slated to investigate its safety and efficacy among migraine patients.
2. PUR1800: Designed to treat acute exacerbations in chronic obstructive pulmonary disease (AECOPD), this formulation demonstrated safety and tolerability in Phase 1b clinical studies, paving the way for its continued development.
3. PUR1900: An antifungal therapy that has transitioned past Phase 2 planning stages, with ongoing trials in collaboration across international fronts. Its advancement may yield significant future royalties for Pulmatrix depending upon market outcomes.

In conclusion, Pulmatrix is positioned at a pivotal juncture, embarking on comprehensive changes aimed at maximizing its clinical and financial standing through a strategic merger while refining its asset portfolio. Market observers and stakeholders will be keenly monitoring developments as the proposed merger with Cullgen approaches fruition, potentially redefining Pulmatrix’s prospective commercial landscape.