Small Pharma Implements Cost-Cutting Strategy To Reduce Cash Burn As Trial Progresses
Portfolio Pulse from Lara Goldstein
UK-based biotech firm Small Pharma Inc. (OTCQB:DMTTF) reported a net loss of $17.2 million for the fiscal year ended Feb. 28, 2023, compared to $16.7 million in FY2022. The company's cash reserves decreased to $13.9 million from $30.6 million over the same period. Small Pharma is implementing a cost-cutting strategy to reduce its annual cash burn and extend its runway to Q4 2024. The company's DMT-related compounds, SPL026 and SPL028, have shown progress in clinical trials, with positive outcomes in a Phase 2a trial for SPL026 and preliminary findings validating the target drug profile for SPL028.
June 29, 2023 | 6:55 pm
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NEUTRAL IMPACT
Small Pharma reported a net loss and decrease in cash reserves for FY2023, but is implementing a cost-cutting strategy to extend its financial runway. The company's DMT-related compounds are showing progress in clinical trials, which could potentially lead to future revenue.
Small Pharma's financial results show a net loss and decrease in cash reserves, which could negatively impact the stock price. However, the company's cost-cutting strategy and progress in clinical trials could potentially offset these negative impacts and lead to future revenue growth, making the short-term impact neutral.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100