EDSA · Edesa Biotech, Inc.

Edesa Biotech's fiscal Q2 2026 results reflect accelerated investment in its clinical pipeline, with total operating expenses rising 165% year-over-year to $4.3 million, primarily from a 361% surge in R&D to $2.8 million. This increase stemmed from manufacturing and preparatory activities for the upcoming Phase 2 study of EB06, an anti-CXCL10 antibody for moderate-to-severe vitiligo, including contracting a CRO and site outreach. Additional costs supported regulatory and manufacturing readiness for paridiprubart, its Phase 3 respiratory candidate, alongside unallocated research. G&A expenses grew modestly 32% to $1.5 million due to higher salaries and professional fees. The resulting net loss expanded to $4.2 million ($0.49/share) from $1.6 million ($0.30/share) last year, partially offset by $79,000 in other income from government reimbursements and forex gains. For the six-month period, losses reached $6.5 million ($0.78/share) versus $3.2 million ($0.74/share). Balance sheet remains solid with $10.0 million cash and $8.2 million working capital at quarter-end, down slightly from September 2025. Management reaffirmed guidance for EB06 site activations and recruitment mid-2026 pending approval, while highlighting consistent Phase 3 benefits of paridiprubart across ARDS subgroups including kidney injury, pneumonia, and sepsis. CFO noted ongoing expense elevation as programs advance, signaling continued cash burn ahead.