0001193125-26-216790
SEC filingDeepening operating losses driven by aggressive R&D investment in clinical trials and manufacturing expansion, offset by a strong capital raise extending runway into late 2027.
Operating loss increased 29.5% to $28.3 million in Q1 2026, compared to $21.8 million in the prior year period. The widening loss reflects continued investment in clinical development of our radiopharmaceutical pipeline, including VMT-α-NET, VMT01, and PSV359. Research and development expenses rose as we advanced these programs and expanded manufacturing capabilities. Management expects R&D costs to continue increasing as we invest in novel drug candidates and facility buildouts.
Net cash used in operating activities was $31.5 million, up from $21.6 million in Q1 2025, driven by the larger net loss and working capital changes. Capital expenditures increased to $6.9 million, primarily for manufacturing facility expansions, including the Somerset, NJ site acquired from Progenics. Free cash flow was negative $38.3 million, reflecting the combined impact of operating losses and capital investments.
We continue to expand manufacturing capacity across existing and newly acquired facilities. The Somerset facility, with three CGMP-compliant suites, is expected to meet future clinical and commercial demand in the Northeastern U.S. Management also notes potential increases in raw material costs due to rising demand for radiopharmaceutical production inputs.
During the quarter, we reported that one patient in Cohort 3 of a clinical trial experienced a transient decrease in lymphocyte count on the cusp between Grades 3 and 4. We continue to engage with regulators and advance our clinical programs.
Management anticipates that any additional financing may be at a discount to market price and dilutive to stockholders. We remain focused on executing our clinical and manufacturing milestones while managing cash carefully.