Percheron Reports $14.9M FY2025 Loss, Shifts Focus to Oncology Antibody
Percheron Therapeutics posted a 25% increase in net loss for FY2025 amid termination of its Duchenne Muscular Dystrophy programs. The company pivots strategically to oncology with the in-licensing of HMBD-002, a monoclonal antibody targeting VISTA, aiming to initiate Phase II trials in 2026.
- Net loss increased 25% to $14.9 million for FY2025
- Discontinued development of ATL1102 and ATL1103 after negative trial results
- In-licensed HMBD-002, a monoclonal antibody targeting VISTA for cancer treatment
- Cash reserves of $10.2 million with cost reduction measures implemented
- Plans to commence Phase II clinical trials for HMBD-002 in calendar year 2026
Financial Results and Strategic Setbacks
Percheron Therapeutics Limited (ASX, PER) has reported a net loss of $14.9 million for the fiscal year ended 30 June 2025, marking a 25% increase from the previous year’s $11.9 million loss. This deterioration reflects the full expensing of research and development costs associated with its Duchenne Muscular Dystrophy (DMD) drug candidate ATL1102, which was discontinued following a negative Phase IIb trial outcome.
The company also ceased development of its second antisense oligonucleotide asset, ATL1103, after a strategic review. These terminations underscore the inherent risks in biotech drug development, particularly in rare diseases, where clinical efficacy can be elusive despite promising early data.
Pivot to Oncology with HMBD-002
In a decisive strategic pivot, Percheron has in-licensed HMBD-002 from Singapore-based Hummingbird Bioscience. HMBD-002 is a recombinant humanised monoclonal IgG4 antibody targeting VISTA, an immune checkpoint receptor implicated in cancer immune evasion. Monoclonal antibodies have transformed oncology treatment paradigms, and HMBD-002 represents one of the most advanced VISTA-targeting agents globally.
Importantly, HMBD-002 has completed a Phase I clinical trial in the United States, demonstrating a favorable safety profile both as monotherapy and in combination with pembrolizumab, a leading immuno-oncology drug. Preclinical data published in 2025 further highlight HMBD-002’s potential to enhance radiotherapy efficacy and to inhibit tumor growth in challenging cancers such as triple-negative breast cancer.
Financial Position and Operational Outlook
Despite the increased loss, Percheron maintains a cash position of approximately $10.2 million as of 30 June 2025. The company implemented rigorous cost reduction initiatives, including downsizing, to preserve financial stability. It also received a $2.35 million R&D tax incentive refund related to prior year expenditures.
Looking ahead, Percheron plans to initiate Phase II clinical trials for HMBD-002 in calendar year 2026, aiming to generate efficacy data that could support accelerated regulatory pathways or attractive licensing partnerships. The company’s leadership emphasizes building a diversified oncology pipeline to mitigate the binary risks associated with single-asset dependency.
Governance and Market Confidence
The 2025 annual report includes an unqualified audit opinion from William Buck Audit, though it notes material uncertainty regarding the company’s ability to continue as a going concern due to ongoing losses. The board and management express confidence in their strategic direction and the strength of their team to navigate the challenges ahead.
No dividends were declared, consistent with the company’s focus on reinvesting capital into clinical development and pipeline expansion. Share-based payments increased significantly, reflecting incentive structures aligned with long-term value creation.
Bottom Line?
Percheron’s pivot to oncology with HMBD-002 marks a critical juncture; upcoming clinical milestones will be key to restoring investor confidence.
Questions in the middle?
- Will HMBD-002’s Phase II trials demonstrate sufficient efficacy to attract partners or justify accelerated approval?
- How will Percheron manage its cash runway amid ongoing R&D expenses and no near-term revenue?
- What additional pipeline assets might Percheron pursue to diversify risk beyond HMBD-002?
