Acurx Pharmaceuticals’ Earnings Call: Progress Amidst Funding Challenges

Acurx Pharmaceuticals Llc ((ACXP)) has held its Q1 earnings call. Read on for the main highlights of the call.

Acurx Pharmaceuticals’ recent earnings call painted a picture of both optimism and caution. The company celebrated significant scientific and regulatory achievements, such as positive guidance from the European Medicines Agency and groundbreaking publications. However, the call also underscored the financial challenges and the company’s reliance on external funding, which could impact future clinical developments.

Successful Direct Offerings

Acurx Pharmaceuticals successfully closed a $2.5 million registered direct offering in January and a $1.1 million offering in March. These funds are crucial for the company’s operations, providing much-needed financial support to continue its research and development activities.

Positive Regulatory Guidance

The company received encouraging regulatory guidance from the European Medicines Agency for its ibezapolstat Phase 3 clinical trial program. This aligns with the FDA on key aspects, marking a significant step forward in the drug’s development process.

Scientific Advancements

Recent publications in the Journal of Antimicrobial Agents and Chemotherapeutics have highlighted ibezapolstat’s microbiome restorative potential and selective antibacterial activity. These scientific advancements bolster the drug’s profile and potential market impact.

Patent Milestones

Acurx secured new patents in Japan and India for DNA pol IIIC inhibitors, which will expire in 2039. This strengthens the company’s ACX-375 pre-clinical antibiotic program, providing a competitive edge in the pharmaceutical market.

Significant Reduction in Net Loss

The company reported a net loss decrease to $2.1 million from $4.4 million year-over-year. This improvement in financial management is notable, especially given the ongoing research and development expenditures.

Publication Acceptance

Phase 2 clinical trial data for ibezapolstat has been accepted for publication in Lancet Microbe. This showcases the drug’s high clinical cure rates and safety profile, further validating its therapeutic potential.

Funding Challenges for Phase 3 Trials

Despite various funding initiatives, Acurx has not yet secured the necessary funds to commence its Phase 3 program for ibezapolstat. This remains a significant hurdle for the company’s future plans.

Decreased R&D and G&A Expenses

The company reported a decrease in research and development expenses by $1 million and general and administrative expenses by $1.2 million. These reductions indicate possible limitations in ongoing projects but also reflect improved cost management.

Dependence on External Funding

Acurx continues to rely heavily on external funding and equity lines, highlighting potential cash flow vulnerabilities. This dependence poses a risk to the company’s financial stability and future growth.

Forward-Looking Guidance

During the earnings call, Acurx Pharmaceuticals provided guidance on its future plans. The company reported a cash balance of $4.6 million as of March 31, 2025, up from $3.7 million at the end of 2024. This increase is largely due to raising approximately $3.6 million through two registered direct offerings. Looking ahead, Acurx plans to continue exploring funding opportunities for its Phase 3 ibezapolstat clinical trial program and expects to maintain reduced operating expenses until the trial commences.

In conclusion, Acurx Pharmaceuticals’ earnings call reflected a mix of optimism and caution. While the company has made significant scientific and regulatory progress, financial challenges and reliance on external funding remain critical concerns. The company’s ability to secure funding for its Phase 3 trials will be pivotal in determining its future trajectory.