Connect Biopharma 2025 Q3 Earnings 33.6% Wider Net Loss Amid Revenue Collapse

Connect Biopharma reported fiscal 2025 Q3 results on Nov 12, 2025, with revenue plummeting 98.7% year-over-year and net losses widening. The company reiterated guidance to fund operations through 2027 despite the significant decline in financial performance.

Revenue

Connect Biopharma’s total revenue collapsed to $16,000 in 2025 Q3, a 98.7% drop from $1.22 million in the prior-year period. License and collaboration revenue, which encompassed cost reimbursements for clinical materials, accounted for the entirety of the company’s reported revenue. This sharp decline reflects reduced milestone payments and upfront licensing activity compared to 2024.

Earnings/Net Income

The company’s losses deepened to $0.31 per share in 2025 Q3, a 34.8% increase in per-share losses from $0.23 in 2024. Net losses widened to $17.20 million, a 33.6% year-over-year increase from $12.88 million. The deteriorating financial performance underscores operational challenges amid limited revenue diversification. The widening losses represent a negative outcome for shareholders.

Price Action

Connect Biopharma’s stock edged up 2.55% on the latest trading day but faced broader downward pressure, with a 4.45% decline in the most recent week and an 11.54% drop month-to-date.

Post-Earnings Price Action Review

The post-earnings market reaction reflects mixed investor sentiment. While a modest intraday gain suggests some optimism around clinical progress, the week-to-date and month-to-date declines indicate lingering concerns over the company’s financial sustainability. The stock’s volatility aligns with its speculative profile, as investors balance near-term operational risks against long-term pipeline potential.

CEO Commentary

Barry Quart emphasized advancements in rademikibart’s clinical development, including ongoing Phase 2 trials for asthma and COPD, with topline data expected in 1H26. He highlighted collaboration with Simcere, including an NDA submission for atopic dermatitis in China and a Phase 3 asthma study. Quart also noted operational efficiencies, such as terminating the ADR program to directly list on Nasdaq, and expressed confidence in funding operations through 2027.

Guidance

Connect Biopharma expects to report topline data from Phase 2 Seabreeze STAT studies in 1H26 and anticipates regulatory progress with Simcere’s NDA submission in China. The company holds $54.8 million in cash and equivalents, projecting sufficiency to fund operations into 2027. Potential milestone payments of up to $110 million from Simcere and royalties on Greater China sales remain key financial catalysts.

Additional News

Connect Biopharma recently relocated its headquarters to San Diego, California, as part of a strategy to strengthen its U.S. presence. The company advanced its partnership with Simcere, with the Phase 3 asthma maintenance study ongoing, though no timeline was provided. In September 2025, Connect presented data at the European Respiratory Society Congress, highlighting rademikibart’s potential in improving lung function and asthma control. These developments underscore the company’s focus on respiratory disease innovation and international collaboration.