Rafael Holdings ( (RFL) ) has released its Q2 earnings. Here is a breakdown of the information Rafael Holdings presented to its investors.
Rafael Holdings, Inc. is a holding company with interests in clinical and early-stage pharmaceutical companies, focusing on developing treatments for rare diseases and cancer metabolism-based therapeutics. The company is currently planning a merger with Cyclo Therapeutics, which is expected to close in the third quarter of fiscal 2025, pending shareholder approval. This merger will shift Rafael Holdings’ strategic focus to Cyclo’s lead clinical program, Trappsol® Cyclo™, aimed at treating Niemann-Pick Disease Type C1.
In its second-quarter fiscal 2025 financial results, Rafael Holdings reported a net loss of $4.6 million, compared to a net income of $6.0 million in the same period last year. This decline is largely due to unrealized losses on investments in Cyclo Therapeutics, which the company acquired in anticipation of the merger. The company’s cash and cash equivalents stood at $48.3 million as of January 31, 2025.
Key financial metrics for the first six months of fiscal 2025 include a net loss of $13.6 million, compared to a net income of $2.4 million in the prior year. Research and development expenses increased to $2.3 million, reflecting activities at newly consolidated entities, Cornerstone and Day Three. General and administrative expenses also saw a slight increase to $5.1 million.
Looking ahead, Rafael Holdings remains optimistic about the potential of Trappsol® Cyclo™ to improve patient outcomes for those suffering from Niemann-Pick Disease Type C1. The company anticipates releasing topline data from its ongoing Phase 3 trial in mid-2025, which could significantly impact its strategic direction and financial performance.