Quantum BioPharma Ltd. (NASDAQ: QNTM) (CSE: QNTM) (FRA: 0K91) said Friday it’s made some inroads with its financials in 2024, removing its going concern designation as it looks to advance its clinical pipeline for brain disorders and alcohol-related health products.
The company, which rebranded from FSD Pharma in August, posted cash and cash equivalents of $12.1 million as of Dec. 31, 2024, up from $11.1 million at the end of 2023, according to its year-end financials.
“The fourth quarter of 2024 and early 2025 were highlighted by continued development of our robust pipeline of products and assets focused on addressing significant unmet needs in brain disorders and alcohol health, with three near-term monetization events,” CEO Zeeshan Saeed said in a statement.
Operating expenses fell 32% to $16.1 million in 2024 from $23.8 million in 2023. Net cash used in operations was reduced to $6.9 million, a 36% improvement from $10.8 million in the prior year.
The company has made significant strides with its “unbuzzd” alcohol detoxification product, completing a double-blind, randomized, placebo-controlled clinical trial. Results showed “unbuzzd dramatically and rapidly reduced blood alcohol concentration in study participants” with the rate of BAC reduction more than 40% faster within 30 minutes compared to control subjects, according to Saeed.
Quantum BioPharma retains a 25.71% ownership stake in Celly Nutrition Corp., which markets unbuzzd. The agreement includes royalty payments of 7% of sales until payments reach $250 million, after which the royalty drops to 3% in perpetuity. The company disclosed that Celly engaged a New York investment bank to explore a potential IPO.
Quantum’s pharmaceutical pipeline also showed progress, with its multiple sclerosis drug, Lucid-21-302, completing a Phase 1 trial. The safety review committee found the drug “well-tolerated with no safety concerns,” and the company’s preparing for an FDA submission in 2025.
It’s all a meaningful turnaround for the company, which went through a major transformation last year. In August, while still operating as FSD Pharma, the company announced its name change and consolidated its shares to regain compliance with Nasdaq’s minimum bid price requirement. At that time, the company’s stock was trading at around 20 cents a share.
The company’s also purchased $3.5 million worth of Bitcoin and other cryptocurrencies. Quantum BioPharma said it think it has enough cash on hand “to sustain basic operations beyond January 2027.”
Net loss for 2024 improved to $14.9 million, an 18% reduction from the $18.2 million loss reported in 2023.
[[{“value”:”The company is focused on its alcohol metabolism and multiple sclerosis treatments.
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