0001453687-26-000064
SEC filingCartesian Therapeutics, Inc. reported a net loss of $130.3 million for fiscal year 2025, a significant increase from a $77.4 million loss in 2024. Total revenues were minimal at $2.8 million, derived from collaboration/license fees ($0.4 million) and grants ($2.4 million), representing a 93% decrease from the prior year's $38.9 million, which included a large milestone payment. Operating expenses surged 77% to $146.2 million, driven by a $56.7 million impairment charge related to discontinuing development of Descartes-08 in systemic lupus erythematosus (SLE), alongside increased R&D spending for the Phase 3 AURORA trial in myasthenia gravis (MG). The company ended the year with $125.1 million in cash and cash equivalents and an accumulated deficit of $822.4 million. Management believes existing cash will fund operations for at least the next 12 months.
Cartesian Therapeutics, Inc. (RNAC) reported a substantial net loss of $130.3 million for the fiscal year ended December 31, 2025, compared to a net loss of $77.4 million in 2024. This 68% increase in loss was driven by a significant rise in operating expenses, partially offset by a decrease in losses from changes in the fair value of certain liabilities. Total revenues were minimal at $2.8 million, a sharp 93% decline from $38.9 million in 2024. The prior year's revenue included a $30.0 million development milestone from the Sobi License and recognition of remaining deferred revenue from the terminated Astellas Agreement. The company's operating loss was $143.4 million for FY 2025, compared to $43.9 million in the prior year. Basic and diluted net loss per share was $5.00 for both years.
Revenue for FY 2025 consisted of $0.4 million in collaboration and license revenue and $2.4 million in grant revenue. The collaboration/license revenue decreased by $37.9 million (99%) year-over-year, primarily due to the absence of the $30.0 million milestone from Sobi and the recognition of deferred revenue from the Astellas Agreement in 2024. Grant revenue increased by $1.8 million due to higher reimbursable expenses under a National Institutes of Health grant. The company has no product sales and does not expect to generate product revenue for the foreseeable future. Its revenue is currently dependent on collaboration agreements and research grants.
The company's operating loss margin expanded significantly due to increased operating expenses and decreased revenue. Operating expenses totaled $146.2 million in FY 2025, a 77% increase from $82.8 million in 2024. Research and development expenses increased 29% to $58.0 million, driven by costs for the Phase 3 AURORA trial for Descartes-08 in MG, increased employee expenses, and manufacturing operations. General and administrative expenses increased 4% to $31.5 million. A major factor was a $56.7 million non-cash impairment charge related to the in-process research and development asset for Descartes-08 in SLE, following the decision to discontinue development in that indication. This impairment charge represented a significant portion of the total operating expense increase.
Net cash used in operating activities was $73.9 million for FY 2025, compared to $23.7 million used in 2024. The increase was primarily due to higher net loss adjusted for non-cash items and changes in operating assets and liabilities. Net cash used in investing activities was $5.5 million, primarily for purchases of property and equipment. Net cash used in financing activities was $8.1 million, mainly for payments on the contingent value right liability. As of December 31, 2025, the company had $125.1 million in cash and cash equivalents and $1.7 million in restricted cash. Total assets were $296.4 million, including $93.9 million in in-process research and development assets and $48.2 million in goodwill. Total liabilities were $422.7 million, including a $392.1 million contingent value right liability. Stockholders' deficit was $126.2 million, with an accumulated deficit of $822.4 million.
Management believes existing cash, cash equivalents, and restricted cash will fund operating expenses and capital expenditure requirements for at least the next 12 months. The company expects to continue incurring significant losses for the foreseeable future as it advances Descartes-08 for MG through Phase 3 development, advances Descartes-08 for myositis into Phase 2 development, and continues other development activities. Future funding may be sought through equity offerings, debt financings, collaborations, or monetization of potential royalty/milestone payments. Key risks include the inherent uncertainty of clinical development, potential need for additional capital, dependence on third parties for clinical trials and manufacturing, intellectual property protection challenges, and competition. The company's lead product candidate, Descartes-08, has received Orphan Drug Designation and Regenerative Medicine Advanced Therapy (RMAT) Designation from the FDA for the treatment of MG.