Aligos 2025 Q2 Earnings Sharp Loss as Net Income Plummets 413%

Aligos (ALGS) reported its fiscal 2025 Q2 earnings on Aug 07, 2025. The results significantly underperformed compared to the prior year, marked by a sharp net loss. The company did not issue revised guidance for the year but outlined key developments in its clinical pipeline and cash position.

Aligos reported total revenue of $965,000 for the second quarter of 2025, reflecting a 9.0% decline compared to $1.06 million in the same period last year. The company's revenue is derived entirely from its customers, with no income generated from collaborations. This represents a notable shift in revenue structure and a significant contraction in top-line growth.

The company swung to a net loss of $15.86 million, or $1.53 per share, in 2025 Q2, representing a 413.4% deterioration from the net income of $5.06 million, or $0.81 per share, in 2024 Q2. This performance indicates a significant shift in profitability, driven by a combination of declining revenue and higher operating expenses.

The stock price of Aligos has shown mixed performance in recent periods. During the latest trading day, the stock climbed 5.17%, followed by a more substantial gain of 11.68% during the most recent full trading week. However, the stock has edged down 1.33% month-to-date, suggesting some volatility in investor sentiment.

The strategy of buying Aligos shares after a revenue raise quarter-over-quarter on the financial report release date and holding for 30 days proved unprofitable. This approach resulted in a CAGR of -29.09%, an excess return of -115.49%, and a Sharpe ratio of -0.27. These metrics indicate a high-risk investment with poor returns, underscoring the negative market reaction to the earnings release.

Aligos expects its cash, cash equivalents, and investments of $122.9 million as of June 30, 2025, to fund operations into the second half of 2026. The company anticipates interim data from the Phase 2 B-SUPREME study of ALG-000184 in 2026 and topline data in 2027. Aligos expects no revenue from collaborations in the near term but continues to explore out-licensing opportunities, particularly for ALG-055009. The company also outlined plans to advance its other programs, including ALG-097558, with future development expected to be funded externally.

Lawrence Blatt, Ph.D., M.B.A., Chairman, President, and CEO of Aligos Therapeutics, expressed optimism about the company’s clinical pipeline. He highlighted the progress of ALG-000184, which is entering the Phase 2 B-SUPREME study across multiple countries. Blatt emphasized the drug’s potential to replace standard-of-care treatment for HBV and its role as a foundation for functional cures. He also noted the strong tolerability and antiviral activity of ALG-000184, as well as enthusiasm for ALG-055009, which showed significant reductions in liver fat and atherogenic lipids in Phase 2a trials. The CEO expressed optimism about the potential for out-licensing ALG-055009 and the broader pipeline while acknowledging ongoing efforts to secure funding for ALG-097558.

Aligos expects its cash, cash equivalents, and investments of $122.9 million as of June 30, 2025, to fund operations into the second half of 2026. The company anticipates interim data from the Phase 2 B-SUPREME study of ALG-000184 in 2026 and topline data in 2027. Aligos expects no revenue from collaborations in the near term but continues to explore out-licensing opportunities, particularly for ALG-055009. The company also outlined plans to advance its other programs, including ALG-097558, with future development expected to be funded externally.

The company announced the initiation of the Phase 2 B-SUPREME study of ALG-000184, which is a randomized, double-blind, active-controlled multicenter study evaluating the safety and efficacy of the drug in subjects with chronic HBV infection. The study, which recently began obtaining regulatory approvals in several countries, is expected to enroll approximately 200 untreated HBeAg+ and HBeAg- adult subjects. Aligos also highlighted the successful completion of the Phase 1 study of ALG-000184, where the drug demonstrated well-tolerated and potentially best-in-class antiviral activity over 96 weeks of treatment.

Additionally, the company presented Phase 2a HERALD data for ALG-055009, a potential best-in-class small molecule THR-β agonist for MASH. The data showed statistically significant reductions in liver fat and atherogenic lipids, suggesting potential added benefits for patients at risk of cardiovascular disease. The company is continuing to evaluate various options to fund continued development, including potential out-licensing.

The AGILE platform study assessing ALG-097558, a potential best-in-class ritonavir-free small molecule pan-coronavirus protease inhibitor, began in 2024. The NIAID is sponsoring a drug-drug interaction and relative bioavailability study of ALG-097558 in healthy volunteers that began dosing in the second quarter of 2025. The company expects any future development of ALG-097558 to be funded by external sources.