Eledon Pharmaceuticals reported a net loss of $17.5 million for the nine‑month period ended September 30, 2025, translating to earnings of –$0.21 per share, a beat of $0.01 versus the consensus estimate of –$0.22. The company’s cash, cash equivalents and short‑term investments stood at $93.4 million, down from $140.2 million at the end of 2024, but the $57.5 million financing raised on November 13, 2025, extends the firm’s runway for at least the next twelve months and provides additional capital for the Phase 2 BESTOW trial and related studies.
The company’s research and development expense fell to $15.0 million in Q3 2025, a reduction of $5.3 million from the $20.3 million spent in Q2 2025. The decline reflects a shift in the company’s development focus toward the Phase 2 BESTOW study, which requires fewer pre‑clinical and early‑phase activities. General and administrative costs rose modestly to $4.1 million, up from $4.0 million in Q3 2024, driven by incremental hiring and expanded support functions needed to manage the accelerated clinical program.
The Phase 2 BESTOW trial, which evaluated tegoprubart versus tacrolimus in kidney transplant recipients, produced encouraging safety and tolerability data, showing a substantial reduction in metabolic, neurologic and cardiovascular toxicities that are common with tacrolimus. However, the trial missed its primary endpoint of non‑inferiority for graft survival at 12 months. The missed endpoint is a significant headwind, as it raises questions about the drug’s clinical efficacy and may delay regulatory approval. The favorable safety profile, however, remains a key differentiator that management believes will support progression into Phase 3.
Chief Executive Officer David‑Alexandre C. Gros emphasized the trial’s safety advantages, stating, “The results from our Phase 2 BESTOW trial demonstrated tegoprubart’s excellent efficacy and safety, importantly avoiding many of the long‑term toxicities commonly seen with current standard‑of‑care immunosuppressive therapies.” He added that the new financing “enhances our ability to advance tegoprubart’s programs in kidney transplantation, islet cell transplantation, and xenotransplantation, addressing critical unmet needs in transplant medicine.”
Market reaction to the earnings was muted, with investors focusing on the missed primary endpoint despite the safety gains. The negative reaction reflects concerns that the efficacy data may not be sufficient to justify a Phase 3 launch, while the positive safety profile is viewed as a potential long‑term competitive advantage. The company’s net loss and ongoing need for capital also contributed to investor caution.
Eledon’s outlook remains focused on moving tegoprubart into Phase 3, with the company confident that the safety data will support regulatory discussions. The $57.5 million financing provides a financial cushion that allows the firm to maintain its current pace of development and to address any additional regulatory or clinical milestones that may arise before the next funding round. The company’s strategy to diversify tegoprubart into other transplant indications and ALS is intended to broaden its commercial potential once regulatory approval is achieved.
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