Connect Biopharma 2025 Q3 Earnings 33.6% Wider Net Loss Despite Strategic Advancements

Connect Biopharma reported Q3 2025 earnings marked by a sharp revenue decline and expanded losses, though the company highlighted ongoing clinical progress. The results fell short of prior performance metrics, with no guidance adjustments announced despite significant operational updates.

Revenue

Connect Biopharma’s total revenue plummeted 98.7% year-over-year to $16,000 in Q3 2025, driven entirely by cost reimbursements for clinical materials under license and collaboration agreements. This represents a stark contrast to the $1.22 million in 2024 Q3, which included upfront fees and milestone payments. The absence of recurring revenue streams underscores the company’s reliance on one-time collaboration income.

Earnings/Net Income

The company’s net loss widened to $17.20 million in Q3 2025, a 33.6% increase from $12.88 million in 2024 Q3, while earnings per share (EPS) deteriorated to -$0.31 from -$0.23. These results reflect elevated R&D expenses and operational challenges, signaling a significant deterioration in profitability.

Price Action

Post-earnings, CNTB shares saw mixed short-term performance: a 2.55% intraday gain, a 4.45% weekly decline, and an 11.54% monthly drop. However, a three-year backtest of a 30-day holding strategy post-earnings showed a 25.8% return from January 2023, with cumulative gains reaching 46.2% by November 2025. This suggests historical investor optimism despite recent volatility.

CEO Commentary

CEO Barry Quart emphasized progress in rademikibart’s Phase 2 trials for asthma/COPD and the NDA submission for atopic dermatitis in China. While acknowledging regulatory risks, he highlighted the drug’s potential to differentiate in type 2 inflammatory disease markets and the strategic shift toward U.S. operations.

Guidance

Connect Biopharma anticipates topline data from Phase 2 Seabreeze STAT trials in 1H26 and expects cash reserves of $54.8 million to fund operations through 2027. The company remains focused on clinical execution, with milestone payments up to $110 million contingent on regulatory and commercial milestones.

Post-Earnings Price Action Review

A strategy of purchasing CNTB shares following the Q3 2025 earnings release and holding for 30 days demonstrated strong historical performance. An initial investment on January 1, 2023, yielded a 25.8% return, with cumulative gains reaching 46.2% by November 11, 2025. This outperformance is notable given the company’s Q3 2025 net loss, suggesting market confidence in long-term clinical and partnership developments.

Additional News

Connect Biopharma submitted an NDA for rademikibart’s atopic dermatitis indication in China via partner Simcere in July 2025, with regulatory review ongoing. The company also terminated its ADR program and directly listed shares on Nasdaq in February 2025, streamlining U.S. market access. Additionally, it relocated its headquarters to San Diego, California, as part of its U.S.-centric strategy.

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