Rafael Holdings Reports Third Quarter Fiscal 2025 Financial Results

Core Viewpoint - Rafael Holdings, Inc. has reported its financial results for the third quarter and first nine months of fiscal year 2025, highlighting a significant reduction in net losses compared to the previous year, driven by strategic mergers and enhanced financial positioning through a recent rights offering [1][4][7]. Financial Results Summary Third Quarter Results - For the three months ended April 30, 2025, Rafael Holdings recorded a net loss of $4.8 million, or $0.19 per share, a decrease from a net loss of $32.4 million, or $1.36 per share in the same period last year [4][16]. - The reduction in net loss is attributed to lower unrealized losses on investments and the absence of significant recovery of receivables from Cornerstone, which was present in the previous year [4][7]. - Research and development expenses increased to $3.0 million from $1.5 million year-over-year, reflecting the inclusion of Cyclo Therapeutics' spending post-merger [5]. - General and administrative expenses rose to $3.2 million from $1.9 million, also due to the merger and consolidation of additional entities [6]. Nine Months Results - For the nine months ended April 30, 2025, the net loss attributable to Rafael Holdings was $18.4 million, or $0.73 per share, compared to a net loss of $29.9 million, or $1.26 per share in the prior year [7][16]. - The decrease in net loss is linked to the in-process R&D expense related to the acquisition of Cornerstone and unrealized gains on investments in Cyclo equity [7]. - Research and development expenses for the nine months were $5.3 million, up from $2.6 million, again reflecting the impact of the Cyclo Therapeutics merger [8]. - General and administrative expenses increased to $8.3 million from $6.5 million, driven by similar factors as noted in the quarterly results [9]. Strategic Developments - The company completed its merger with Cyclo Therapeutics and anticipates reporting topline data from a pivotal Phase 3 study for Trappsol® Cyclo™ later this month [2]. - A $25 million rights offering was successfully closed, raising net proceeds of $24.9 million, which will support the advancement of new treatment options for Niemann-Pick Disease Type C1 [3]. Cash Position - As of April 30, 2025, Rafael Holdings had cash and cash equivalents of $37.9 million, significantly up from $2.7 million at the end of the previous fiscal year [3][13]. Company Overview - Rafael Holdings, Inc. focuses on clinical and early-stage pharmaceutical companies, including Cyclo Therapeutics, which is developing Trappsol® Cyclo™ for treating a rare genetic disorder [10][11].