Indaptus Posts Narrower Loss in Q2

Key Points

• GAAP EPS loss of $9.09 was narrower than the expected $9.24 per share for Q2 2025, a minor outperformance.

• Research and development expenses (GAAP) rose 29.2% to $2.2 million, reflecting increased clinical trial costs.

• Cash and cash equivalents totaled $6.2 million as of June 30, 2025.

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Indaptus Therapeutics (NASDAQ:INDP), a biotechnology company advancing a novel immunotherapy platform for cancer and infectious diseases, reported its second quarter earnings on August 13, 2025. The most significant headline was its narrower-than-expected net loss, reporting a GAAP loss per share of $9.09 for Q2 2025 versus an estimated $9.24. The company remained pre-revenue as anticipated. Its cash position (GAAP) was $6.2 million as of June 30, 2025, and research spending climbed as it expanded its clinical trial program. Overall, the quarter marked steady operational progress, but it underscored persistent liquidity challenges as clinical development costs rise.

Source: Analyst estimates for the quarter provided by FactSet.

About Indaptus Therapeutics and Its Focus Areas

Indaptus Therapeutics is a clinical-stage biotech specializing in immunotherapies for cancer and infectious diseases. Its primary development program is Decoy20, an engineered bacterial immunotherapy designed to boost the immune system against tumors. The company is not yet generating product revenue, focusing resources on research and development.

Recent business priorities include advancing the Decoy20 clinical trial, expanding its patent portfolio, and maintaining regulatory momentum. Key success factors for the company are clinical efficacy, safety outcomes, financial stability to fund operations, and protection of its proprietary technology via intellectual property rights. Strategic partnerships and access to external capital are also critical for ongoing operations.

Quarter in Review: Operations, Financials, and Clinical Progress

During the quarter, the most notable milestone was initiating the Phase 1b/2 study of Decoy20 in combination with a PD-1 checkpoint inhibitor. This marks the company's shift from studying Decoy20 alone to evaluating its effects when paired with another immunotherapy. The first patient was dosed in July 2025, with early data from this combination cohort expected later in the year. This study builds on preclinical findings that support Decoy20’s ability to broadly activate immune cells and work with checkpoint inhibitors to combat solid tumors.

Research and development (R&D) expense (GAAP) rose to $2.2 million, up from $1.7 million in the prior-year period, an increase of 29.2% year over year. This increase was primarily driven by an additional $0.8 million in costs related to the ongoing Phase 1 study. General and administrative (G&A) expenses, covering corporate costs, decreased slightly to $2.3 million from $2.4 million (GAAP). Total operating expenses (GAAP) increased to $4.5 million. Net loss (GAAP) reached $5.2 million. Net loss was higher year over year, reflecting the higher burn rate tied to ramping R&D efforts.

Financially, liquidity remained a central issue. The company ended the quarter with $6.2 million in cash and equivalents. This cash level was modestly increased by a $5.7 million capital raise in June 2025, achieved through a private placement of convertible notes and warrants. These notes converted into equity in July, allowing the company to manage short-term funding needs. However, management disclosed that the current cash balance is expected to support operations only through Q4 2025. Unless new funding is secured, ongoing trial activity and operating expenses will quickly outstrip existing resources.

The segment breakdown is straightforward, as R&D spending is focused on the Decoy20 program. Indaptus operates without material product sales or licensing income, reflecting the common model among similar biotech firms in early development phases. While The clinical supply agreement with BeiGene, signed in October 2024, enabled the combination trial, no other new partnerships or business development initiatives were revealed.

Looking Ahead: Outlook and Upcoming Milestones

Looking ahead, management expects to release initial data from the Decoy20 and tislelizumab combination study later in 2025. The clinical trial’s early results will be a major focus for both the company and investors, as the program’s core investment thesis depends on demonstrating clear efficacy and safety in humans. No specific financial guidance was offered by management for the coming quarter or fiscal year.

The company will continue to seek additional financing to extend its cash runway, with management referencing ongoing reviews of funding options to support corporate strategy. For investors tracking Indaptus, key watch areas include updates on clinical trial data, progress toward regulatory approvals, and developments in capital-raising.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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