Eledon Pharmaceuticals (ELDN), a biotechnology company focused on developing novel therapies for organ and cell transplantation as well as amyotrophic lateral sclerosis (ALS), issued its second-quarter results on Aug. 14, 2025. The most notable update was a narrowed earnings loss for the quarter -- driven by a substantial gain from changes in warrant liability accounting rather than operating improvements -- and continued clinical progress for its lead drug candidate, tegoprubart. Earnings per share (EPS, GAAP) was $0.13, ahead of analyst estimates for a loss of $0.23. Net loss (GAAP) sharply improved to $11.2 million from $44.9 million a year earlier, mostly the result of non-operating items. The quarter featured major increases in research and development spending, with cash, cash equivalents, and short-term investments of $107.6 million as of June 30, 2025.
Overall, the quarter was marked by key clinical milestones, high spending, and financial results supported by accounting changes rather than operational improvement.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.13) | $(0.23) | $(0.92) | 85.9% |
| Research and Development Expenses | $20.3 million | $10.1 million | 101% | |
| General and Administrative Expenses | $4.5 million | $4.4 million | 2.3% | |
| Net Loss | $11.2 million | $44.9 million | −75% |
Source: Analyst estimates for the quarter provided by FactSet.
About Eledon Pharmaceuticals and Its Strategy
Eledon Pharmaceuticals is a clinical-stage biotech company aiming to develop new therapies for organ transplantation and autoimmune conditions, with a principal focus on addressing organ rejection. Its core asset is tegoprubart, a monoclonal antibody designed to block CD40 ligand, a protein involved in driving immune system rejection of transplanted organs.
The company's recent strategy has focused on advancing tegoprubart in kidney transplantation, islet cell transplantation, xenotransplantation, and ALS. It aims to differentiate this immunosuppressive therapy by improving safety and reducing common side effects, such as nephrotoxicity (kidney toxicity) seen with current standards. Success depends on clinical trial progress, securing patent protection, and obtaining enough financing to see clinical programs through to key data milestones and potential regulatory approval.
Review of the Quarter: Financial and Clinical Headlines
The quarter's financials reflected several critical shifts. Earnings per share (GAAP) beat expectations, coming in at $0.13 against forecasts for a loss of $0.23. However, this improvement primarily reflected a $12.3 million gain from changes in the value of warrant liabilities -- an accounting item that can swing sharply with market factors, unrelated to the core business. This same accounting effect was a negative $31.3 million in Q2 2024, so the underlying operating loss actually increased even as the reported bottom line (GAAP net loss) improved significantly.
Research and development expenses (GAAP) doubled, reaching $20.3 million from $10.1 million a year earlier. This reflects higher spending as next-phase clinical studies progress, especially for tegoprubart. Meanwhile, general and administrative costs (GAAP) were stable at $4.5 million, showing little change. Net loss (GAAP) was $11.2 million, far less than a year ago, but again this was due to non-cash financial adjustments -- not lower operating losses.
Clinically, Eledon advanced its lead kidney transplantation program for tegoprubart. Updated interim results from the open-label Phase 1b trial showed promising tolerability: among 32 participants, there were no reports of death, graft loss, drug-related tremor, sepsis, or new-onset diabetes. Kidney function -- measured by estimated glomerular filtration rate (eGFR), a marker of how well the kidneys work -- stabilized for 12 patients remaining on therapy at roughly 68 mL/min/1.73 m² at the 12-month mark in the ongoing Phase 1b open-label trial of tegoprubart. This compares favorably to about 53 mL/min/1.73 m² seen historically with standard therapies at 12 months post-kidney transplant.
Additional efforts included expansion in islet cell transplantation (a potential therapy for Type 1 diabetes), where the first three recipients of islet cell transplants using tegoprubart achieved insulin independence. Another three patients were enrolled, totalizing six participants in the ongoing study. In the emerging field of xenotransplantation (transplants using animal organs), the third patient was dosed in an investigator-led study at Massachusetts General Hospital, but this remains an early, experimental effort.
On the corporate side, Eledon was added to the Russell 3000 and Russell 2000 indexes in June 2025, increasing visibility among institutional investors. Eledon also highlighted that its cash, equivalents, and short-term investments totaled $107.6 million as of June 30, 2025 -- down from $140.2 million at Dec. 31, 2024. Management reiterated its guidance that it expects to have enough cash to fund operations through the end of 2026. The capital situation is notable: Eledon’s future pipeline breadth depends heavily on additional funding, especially for lower-priority areas such as amyotrophic lateral sclerosis (ALS).
The absence of any product revenue remains a defining feature of Eledon's financial picture. All value is dependent on successful trial outcomes and future regulatory approvals. The positive earnings surprise in the quarter was unrelated to operations and is unlikely to recur unless similar revaluations of financial instruments happen again.
Outlook and Guidance
Looking into the rest of fiscal 2025 and beyond, Eledon did not provide formal revenue or EPS guidance, which is standard for a company not yet generating product revenues. Eledon reiterated that its current liquidity should fund operations through the end of 2026, a window that covers the important November 2025 readout for its Phase 2 BESTOW trial in kidney transplantation.
Beyond the primary kidney program, management signaled continued progress on smaller, investigator-initiated studies in islet cell transplantation and xenotransplantation. Since all other commercial possibilities hinge on successful clinical outcomes and access to further capital, ELDN does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
