Relmada Therapeutics’ Earnings Call: Promising Data Amid Financial Concerns

Relmada Therapeutics Inc ((RLMD)) has held its Q1 earnings call. Read on for the main highlights of the call.

Relmada Therapeutics Inc’s recent earnings call conveyed a mixed sentiment, showcasing significant advancements in product development with promising Phase 2 data for NDV-01 and sepranolone. The company also emphasized a disciplined financial strategy. However, concerns were raised regarding increased cash usage and a decreased cash position, which could impact future operations.

Addition of Promising Product Candidates

Relmada Therapeutics has expanded its pipeline by adding two promising product candidates: NDV-01 for bladder cancer and sepranolone for Prader-Willi syndrome and Tourette syndrome. Both candidates have shown very encouraging Phase 2 data, suggesting potential breakthroughs in their respective fields.

Positive Phase 2 Data for NDV-01

The initial proof-of-concept Phase 2 data for NDV-01 is highly promising, with an overall response rate of 90% and a complete response in carcinoma in situ patients at 100%. This data positions NDV-01 as a potential game-changer in bladder cancer treatment.

Strong Safety Profile for NDV-01

NDV-01 has demonstrated a strong safety profile, being well tolerated with no treatment-related adverse events greater than Grade 1. This safety assurance is crucial for its continued development and potential approval.

Financial Position and Cost Management

Relmada reported a cash balance of $27.1 million and a decrease in net loss from $21.8 million in Q1 2024 to $17.6 million in Q1 2025. This reflects the company’s efforts in cost management despite the challenges posed by increased cash usage.

Sepranolone’s Potential in Treating Neurobehavioral Disorders

Sepranolone has shown promising Phase 2 results in treating Tourette syndrome and is expected to address sizeable underserved markets, including Prader-Willi syndrome. Its broad safety database further supports its potential as a viable treatment option.

Increased Cash Usage

The earnings call highlighted an increase in cash used in operations, rising from $13 million in Q1 2024 to $18.1 million in Q1 2025. This increase is a point of concern as it impacts the company’s cash reserves.

Decreased Cash Position

Relmada’s cash, cash equivalents, and short-term investments have decreased significantly from $44.9 million as of December 31, 2024, to $27.1 million as of March 31, 2025. This decrease in cash position could pose challenges for future operations and development plans.

Forward-Looking Guidance

Relmada provided forward-looking guidance for its primary product candidates, NDV-01 and sepranolone. NDV-01 showed an 85% overall response rate at three months and a 100% disease-free status in evaluable patients at six months. Meanwhile, sepranolone demonstrated a competitive 28% peak reduction in the primary clinical endpoint in Phase 2 trials. The company is focused on advancing these programs through key clinical and regulatory milestones in 2025 and beyond, supported by a $27 million cash balance.

In summary, Relmada Therapeutics Inc’s earnings call presented a balanced view of optimism and caution. While the company is making significant strides in product development with promising Phase 2 data, financial challenges related to increased cash usage and a decreased cash position remain. The forward-looking guidance indicates a strategic focus on advancing key programs, which will be crucial for the company’s future success.