Ernexa Therapeutics reports 51% reduction in operating expenses

CAMBRIDGE, Mass. - Ernexa Therapeutics (NASDAQ:ERNA), a small-cap biotech company with a market capitalization of $9.7 million, reported significant financial improvements in the first half of 2025, with operating losses decreasing by 51% compared to the same period last year, according to a press release issued by the company Wednesday. The company’s stock, trading near its 52-week low, has faced significant pressure with a 94% decline over the past year, according to InvestingPro data.

The cell therapy developer, which focuses on treatments for advanced cancer and autoimmune disease, reduced its operating loss to $5.2 million for the six months ending June 30, 2025, down from $10.7 million in the comparable period of 2024. Despite the improvement, InvestingPro analysis indicates the company is rapidly burning through cash, with a negative free cash flow of $14.45 million in the last twelve months.

Total operating expenses decreased by 51% to $5.2 million from $10.6 million year-over-year. General and administrative expenses saw a 66% reduction, falling to $2.8 million from $8.2 million. The company also reported a 97% decrease in total lease expense, which dropped to $0.1 million from $3.9 million, primarily due to the termination of a sublease.

"These first half results reflect the discipline we’ve brought to the business. We are operating leaner, prioritizing the programs that matter the most," said Sanjeev Luther, President and CEO of Ernexa Therapeutics.

The company is advancing two cell therapy products through preclinical stages. ERNA-101, its lead product, is being developed for ovarian cancer, while ERNA-201 targets autoimmune disease. Both therapies utilize synthetic, allogeneic induced mesenchymal stem cells (iMSCs) to provide scalable, off-the-shelf treatments without requiring patient-specific cell harvesting.

Ernexa previously reported its financial results in its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 13, 2025.

In other recent news, Ernexa Therapeutics has completed the second closing of its securities purchase agreement, raising approximately $6 million in gross proceeds. The company issued over 3.1 million shares of common stock and more than 622,000 prefunded warrants in this round, following an initial closing in April that generated about $1.1 million. Additionally, Ernexa announced a 1-for-15 reverse stock split to consolidate its shares, which is a strategic move to comply with Nasdaq’s minimum bid price requirement. This reverse split will reclassify every 15 shares into one new share, effectively reducing the number of outstanding shares from approximately 110.4 million to about 7.4 million.

In another development, Ernexa has regained compliance with Nasdaq’s listing requirements, ensuring its continued trading on the exchange. The company also announced a change in its independent auditor, appointing Haskell & White to replace Grant Thornton LLP. Grant Thornton’s reports for the past two years did not contain any adverse opinions, though they included an explanatory paragraph about Ernexa’s ability to continue as a going concern. These steps reflect Ernexa’s ongoing efforts to stabilize its financial standing and maintain its market presence.

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