Pulmatrix set for merger with Cullgen, seeks asset divestment

FRAMINGHAM, Mass. - Pulmatrix, Inc. (NASDAQ: PULM), a biopharmaceutical company specializing in novel inhaled therapeutic products, has announced its first-quarter financial results for 2025 and is preparing for a strategic shift in focus. With a current market capitalization of $22.35 million, the company reported a decrease in revenues to zero for the quarter ended March 31, 2025, compared to $5.9 million in the same period last year, primarily due to the wind down of the PUR1900 Phase 2b clinical trial. According to InvestingPro data, the company’s revenue decline aligns with analysts’ expectations for the current year.

Despite challenging financial metrics, Pulmatrix maintains a strong liquidity position with a current ratio of 10.68, indicating substantial coverage of short-term obligations. The company is in the process of divesting its clinical assets, including its Phase 2-ready acute migraine candidate, PUR3100, and other development candidates based on its iSPERSE™ technology. This move comes as Pulmatrix prepares for its anticipated merger with Cullgen Inc., a clinical-stage biopharmaceutical company. The merger, expected to close in June 2025, is subject to the satisfaction of certain conditions.

Interim CEO Peter Ludlum stated that the company’s focus in the first quarter has been on advancing the merger with Cullgen. The combined entity aims to leverage Cullgen’s targeted protein degradation platform, with three degrader programs in Phase 1 clinical trials for cancer and pain treatment.

Pulmatrix’s PUR3100, an orally inhaled treatment for acute migraine, received a "study may proceed" letter from the FDA for a Phase 2 study. The company also highlighted PUR1800, a treatment for acute exacerbations in chronic obstructive pulmonary disease (COPD), and PUR1900, an inhaled antifungal formulation. While Pulmatrix has completed its responsibilities for PUR1900’s development, its partner Cipla continues clinical development outside the United States.

Research and development expenses for Pulmatrix decreased significantly, reflecting the company’s shift in strategy and the winding down of certain clinical trials. General and administrative expenses saw a slight increase due to costs related to the proposed merger.

The company’s cash position as of March 31, 2025, was $7.7 million, which it believes is sufficient to fund operations through the anticipated merger completion. InvestingPro analysis indicates that while the company holds more cash than debt, it is quickly burning through its cash reserves. For deeper insights into Pulmatrix’s financial health and access to over 10 additional ProTips, consider subscribing to InvestingPro.

This strategic realignment, marked by the divestment of its clinical assets and the proposed merger, represents a significant change in direction for Pulmatrix as it seeks to create a Nasdaq-listed company focusing on targeted protein degradation technology. The company’s stock has shown remarkable strength with a 234% return over the past year, though InvestingPro data suggests maintaining cautious optimism given the company’s current unprofitable status and anticipated earnings challenges.

The information in this article is based on a press release statement from Pulmatrix, Inc.

In other recent news, Pulmatrix, Inc. announced a change in its independent registered public accounting firm following the resignation of Marcum LLP. This change occurred after CBIZ CPAs P.C. acquired the attest business of Marcum, with the majority of Marcum’s partners and staff joining CBIZ. The transition took effect on April 4, 2025, when Marcum officially stepped down, and CBIZ was engaged for the fiscal year ending December 31, 2025. Marcum’s reports on Pulmatrix’s financial statements for the years ending December 31, 2024, and December 31, 2023, did not contain any adverse opinions or disclaimers. There were no disagreements or reportable events as defined by SEC regulations during the two most recent fiscal years and the subsequent interim period through April 4, 2025. Pulmatrix confirmed that it did not consult CBIZ on any matters requiring disclosure under SEC regulations during the relevant periods. Marcum agreed with Pulmatrix’s statements regarding its resignation and provided a letter to the Securities and Exchange Commission. This development reflects Pulmatrix’s commitment to maintaining the integrity of its financial reporting.

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