Connect Biopharma Reports Q2 Revenue Drop of 99.2% to $48,000, R&D Spending Increases 65.6% to $8.8mln

Connect Biopharma, a biotech company, reported Q2 2025 earnings with a significant drop in GAAP revenue from $24.1 million to $48,000 YoY. Reported GAAP EPS was $(0.23), and research and development spending increased sharply. The company is focused on developing therapies for inflammatory diseases, with a primary focus on rademikibart for asthma and COPD.

Connect Biopharma Holdings Limited (Nasdaq: CNTB) reported its second-quarter 2025 earnings, revealing a significant decline in GAAP revenue and a substantial increase in research and development (R&D) spending. The company, focused on developing therapies for inflammatory diseases, reported GAAP revenue of $48,000 in Q2 2025, down from $24.1 million in the same period last year. The reported GAAP earnings per share (EPS) were $(0.23) for Q2 2025, reflecting a substantial loss compared to the EPS of $0.27 in Q2 2024 [1].

The company's R&D expense increased by approximately 65% year-over-year in Q2 2025, reaching $8.8 million, up from $5.3 million in Q2 2024. This increase is attributed to ongoing clinical trials, particularly for rademikibart, a monoclonal antibody product designed to treat asthma and chronic obstructive pulmonary disease (COPD) [1]. The company is in a pre-commercial phase and relies on licensing revenue and existing cash to fund R&D activities.

Connect Biopharma's primary focus is on rademikibart, which is in Phase 2 clinical trials. The company has initiated the Phase 2 "Seabreeze STAT" asthma and COPD studies, which are expected to deliver topline data in the first half of 2026. Additionally, Simcere Pharmaceutical, the company's exclusive licensee in Greater China, has submitted a new drug application for rademikibart to treat atopic dermatitis, which could lead to future milestone payments if regulatory or commercial success is achieved [3].

The company also announced strategic adjustments, including plans to terminate its American Depositary Receipt (ADR) program and list its ordinary shares directly on Nasdaq. This move aims to cut fees for current shareholders and increase institutional investor visibility. Jim Schoeneck, an industry veteran, was appointed to the Board of Directors to bring deep expertise in development and commercialization of breakthrough products [3].

Connect Biopharma's cash reserves, at $71.8 million as of June 30, 2025, are sufficient to fund operations into 2027, according to management. The company expects its clinical trial results and any milestone payments to provide needed resources for further development [1].

Investors should monitor the company's cash use, progress in ongoing clinical trials, and any changes in the regulatory or competitive landscape.

References:
[1] https://www.mitrade.com/au/insights/news/live-news/article-8-1036438-20250813
[2] https://www.marketscreener.com/news/connect-biopharma-holdings-limited-reports-earnings-results-for-the-second-quarter-and-six-months-en-ce7c51d8d988f722
[3] https://finance.yahoo.com/news/connect-biopharma-reports-second-quarter-130000846.html