Tvardi Therapeutics 2025 Q1 Earnings Narrowed Losses by 84%

Tvardi Therapeutics (TVRD) reported its fiscal 2025 Q1 earnings on May 13th, 2025. The total revenue of Tvardi Therapeutics increased by 20.3% to $2.57 million in 2025 Q1, up from $2.13 million in 2024 Q1, with specific segment revenue listed as follow: Collaborative revenue: $1.20 million, Clinical compound revenue: $48000, Other revenue: $1.32 million and Total revenue: $2.57 million.

Tvardi Therapeutics exceeded expectations in its fiscal Q1 2025 earnings report, narrowing its losses significantly. The company reported a reduction in net losses by 84%, highlighting improved financial performance. Tvardi anticipates that the cash available from its recent merger will support operations through significant milestones, including Phase 2 data readouts in idiopathic pulmonary fibrosis (IPF) later this year and hepatocellular carcinoma in early 2026. The company plans to submit an Investigational New Drug (IND) application for TTI-109 in the first half of 2025, aligning with its strategic goals.

Revenue

Tvardi Therapeutics reported a notable increase in total revenue for Q1 2025, reaching $2.57 million, a 20.3% rise from $2.13 million in Q1 2024. Collaborative efforts contributed $1.20 million, while clinical compound revenue stood at $48,000. Other revenue added a substantial $1.32 million, driving the overall growth.

Earnings/Net Income

Tvardi Therapeutics improved its earnings per share significantly, reporting a loss of $3.22 per share in Q1 2025 compared to a loss of $20.24 per share in Q1 2024. The company narrowed its net loss to $4.91 million, marking an 84% reduction from the previous year's $30.70 million loss. This reflects a positive shift in earnings performance.

Post-Earnings Price Action Review

The strategy of purchasing Tvardi Therapeutics (TVRD) shares post-revenue drop on the release date and holding them for 30 days resulted in a 14.4% loss, indicating that this approach has not been effective over the last five years. This historical analysis underscores the challenges in leveraging such a strategy, suggesting that market participants may need to reconsider their approach in the context of Tvardi's stock performance. The persistent losses suggest a need for a strategic reevaluation, especially given the company's recent merger and its implications for future growth and stability. Investors should weigh the potential risks and rewards of holding Tvardi shares, particularly in light of ongoing financial headwinds and evolving market conditions.

CEO Commentary

Dr. Imran Alibhai, Chief Executive Officer of Tvardi Therapeutics, expressed optimism regarding the recent merger with Cara Therapeutics, highlighting that the Nasdaq listing has enhanced the company's visibility and potential capital access. He emphasized strong financial backing, stating that the cash on hand should sustain operations through critical value inflection points, particularly the upcoming Phase 2 readouts for the idiopathic pulmonary fibrosis (IPF) program and the hepatocellular carcinoma program. Dr. Alibhai conveyed confidence in the company's financial position, indicating a cash runway extending into the second half of 2026 following these anticipated data releases.

Guidance

Tvardi Therapeutics anticipates that the cash available at the merger's closure will adequately support operations through significant milestones, including the expected Phase 2 data readouts in IPF in the second half of 2025, and hepatocellular carcinoma in early 2026. The company plans to submit an Investigational New Drug (IND) application for its second clinical candidate, TTI-109, in the first half of 2025, with ongoing clinical trials expected to provide critical data that will influence future development strategies and financial planning.

Additional News

Tvardi Therapeutics recently completed its merger with Cara Therapeutics, resulting in a Nasdaq-listed clinical-stage biopharmaceutical company focused on developing novel treatments targeting STAT3 to treat fibrosis-driven diseases. The merger was accompanied by a private placement financing of approximately $28 million, enhancing Tvardi’s financial position. The company's shares began trading under the ticker symbol "TVRD" on April 16, 2025. This strategic move aims to leverage combined resources for advancing clinical programs and extending Tvardi’s cash runway into the second half of 2026. Additionally, Tvardi announced its presentation at the American Thoracic Society 2025 Annual Conference, highlighting research on its STAT3 inhibitor, TTI-101, which addresses significant therapeutic gaps in idiopathic pulmonary fibrosis.