Cocrystal Pharma (COCP -4.17%), a clinical-stage biotech focusing on antiviral drug development, released its second quarter 2025 earnings on August 14, 2025. The company’s report highlighted a smaller net loss than a year earlier, with a GAAP EPS of $0.20 compared to analyst estimates of ($0.23). This top-line GAAP EPS outperformed expectations by $0.43. The improved bottom line was primarily due to the timing of clinical study costs, particularly in research and development. However, the period also saw a sharp drop in the cash balance, with unrestricted cash decreasing from $9.9 million as of December 31, 2024, to $4.8 million as of June 30, 2025, as the company continued advancing clinical trials, underscoring near-term funding needs. Overall, the quarter reflected tightened expense management and steady progress in product development, even as the path to commercialization remains lengthy.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.20) | ($0.23) | ($0.53) | 62.3 % |
| Net Loss | $2.1 million | $5.3 million | 60.4 % | |
| R&D Expense | $1.1 million | $4.3 million | 74.4 % | |
| G&A Expense | $1.0 million | $1.1 million | −9.1 % | |
| Cash (End of Period) | $4.8 million | $9.9 million* | (51.5 %) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Company Overview and Recent Focus
Cocrystal specializes in antiviral therapies. It uses structure-based drug design—a platform that leverages computational chemistry and X-ray crystallography—to develop small molecule drugs targeting viral replication enzymes. This precise approach aims to hit highly conserved sites in viral proteins. The goal: to produce antivirals with broad effects and a high resistance barrier.
Recently, the business has concentrated on lead drug candidates for norovirus, coronavirus, and influenza. Progress has centered on advancing CDI-988, an oral protease inhibitor in trials for both norovirus and coronavirus, as well as CC-42344, a PB2 inhibitor being developed for influenza A. Key success factors for the company include clinical trial execution, robust intellectual property, and the ability to manage costs while developing its technology platform.
Quarter in Review: Performance and Pipeline Progress
The period saw a markedly lower net loss, coming in at $2.1 million versus $5.3 million in the prior-year quarter, both on a GAAP basis. This narrowing was primarily due to a 74.4% reduction in research and development expense, which fell to $1.1 million. The drop resulted mainly from slower clinical trial spending as the timing of studies shifted. General and administrative costs saw a modest decrease, reflecting reduced staffing costs. Cash used in operations fell in the first half of 2025 compared to the first half of 2024.
R&D cutbacks were largely driven by sequencing and scheduling of trial activity—not permanent decreases. Adjustments to expense levels reflected temporary, strategic moves in the pace of R&D work. Importantly, no revenue was reported or expected, as all programs remain pre-commercial.
The highlight in product progress was the advancement of CDI-988, the company’s oral pan-viral protease inhibitor. Positive Phase 1 data was reported, demonstrating safety and tolerability even at the highest planned doses. The company plans to launch a Phase 1b human challenge study for norovirus treatment and prevention later in 2025. Alongside this, the CC-42344 influenza PB2 inhibitor, both as an oral and inhaled product candidate, continued moving through development. Oral CC-42344 progressed through Phase 2a enrollment as of May 2024, while the inhaled version completed preclinical studies, setting the stage for possible trial expansion.
The pipeline remains focused on broad-spectrum antivirals—drugs purpose-built to work across multiple viral families—and the company continued to emphasize its technology platform as its core differentiator. However, the competitive landscape and regulatory approval process for such products continue to pose long-term challenges with no immediate revenue generation. Cocrystal does not currently pay a dividend.
Looking Ahead
The company did not provide formal financial or revenue guidance for fiscal 2025 or for the next quarter. Management cited ongoing preparations for the Phase 1b norovirus challenge study as the main clinical milestone on the horizon, but specific predictions or targets were withheld. The shrinking cash balance, along with net cash used in operations, suggests that attention will need to focus on funding options and the timing of any further capital raises.
Without new guidance or updates on income or partnership deals, investors and observers should track announced trial progress, expense trends, and especially the company’s ability to secure the funding needed for continued product development. CDI-988’s progress in clinical trials, together with results from CC-42344’s extended studies, will serve as the main markers for how Cocrystal’s year unfolds. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
