Medicus Pharma (NASDAQ:MDCX) reported a narrower third-quarter net loss and lower general and administrative expenses as it shifts development spending towards CD228V, an antibody-drug conjugate licensed from Pfizer.
Net loss for the three months ended September 30, 2026, was $15.2 million, or $11.64 per share, compared with $16 million, or $56.18 per share, in the same period last year.
All share and per-share amounts reflect the company's 50-for-1 share consolidation, which took effect on October 12.
Total operating expenses fell to $14.5 million from $15.4 million a year earlier. General and administrative expenses were cut in half to $2.5 million from $5 million, while research and development spending increased to $2 million from $1.7 million.
Medicus ended the quarter with $13.1 million in cash, cash equivalents and restricted cash, including $5 million in unrestricted cash and cash equivalents.
During the first nine months of 2026, the company raised approximately $42.6 million through equity and secured debt financings, net of issuance costs. After about $6.4 million in debt repayments, net cash provided by financing activities totaled $36.2 million.
"The third quarter saw the transformation of Medicus into a precision oncology-led biotech company with CD228V as our principal development priority," said executive chairman and CEO Raza Bokhari.
Development priorities
Medicus holds an exclusive worldwide license to develop, manufacture and commercialize CD228V under a co-development agreement with Pfizer, which has provided $2 million in development funding.
The company plans to establish initial clinical proof-of-concept in patients with relapsed, refractory or immunotherapy-resistant melanoma. The program is supported by an existing US investigational new drug application and a first-in-human Phase 1 study.
Medicus believes CD228V could achieve an objective response rate above 30% in melanoma, although this remains to be demonstrated in clinical trials.
Pfizer may elect to fund all or part of development costs beginning with the first pivotal trial.
The company is also progressing plans to separate its SkinJect unit through a proposed business combination with a special purpose acquisition company.
A non-binding letter of intent values SkinJect at approximately $135 million in pre-money enterprise value, with concurrent equity financing contemplated at closing. Medicus expects to complete the transaction in the first half of 2027 and intends to retain majority economic and voting ownership of the combined company.
Proceeds would support SKNJCT-005, a registrational Phase 2b study in Gorlin syndrome, and preparations for a potential New Drug Application. Medicus estimates the program will require about $3 million over the next two years.
For Teverelix, the company has submitted a proposed seamless Phase 2b/3 protocol to the US Food and Drug Administration for advanced prostate cancer. The study is designed to enroll approximately 608 patients if predefined continuation criteria are met.
Medicus intends to seek an out-licensing agreement or other strategic partnership for Teverelix rather than finance the study itself.
Management expects a substantial reduction in operating expenses over the coming quarters as it aligns spending with its development priorities.
