Aardvark Therapeutics Reports First Quarter 2025 Financial Results and Provides Business Highlights

Rhea-AI Summary

Aardvark Therapeutics (NASDAQ: AARD) reported its Q1 2025 financial results and business updates. The company successfully completed its IPO in February 2025, raising $87.5 million in net proceeds. As of March 31, 2025, Aardvark had $151.3 million in cash and investments, expected to fund operations into 2027.

The company's lead candidate, ARD-101, is in Phase 3 HERO trial for treating hyperphagia in Prader-Willi Syndrome (PWS), with data readout expected in early 2026. For Q1 2025, R&D expenses increased to $7.8 million from $1.2 million in Q1 2024, while G&A expenses rose to $2.7 million from $0.9 million. Net loss widened to $9.3 million compared to $2.2 million in the prior year.

Positive

• Successful IPO raising $87.5 million in net proceeds
• Strong cash position of $151.3 million, funding operations into 2027
• Phase 3 trial progress for ARD-101 in PWS treatment

Negative

• Increased net loss to $9.3 million from $2.2 million YoY
• Higher R&D expenses at $7.8 million, up from $1.2 million YoY
• Increased G&A expenses to $2.7 million from $0.9 million YoY

Insights

Biotech Financial Analyst

Aardvark reports strong cash position of $151.3M following February IPO, funding operations into 2027 while advancing Phase 3 PWS treatment trial.

Aardvark Therapeutics (NASDAQ: AARD) has posted its Q1 2025 financials showing a robust cash position of $151.3 million, which importantly provides runway into 2027. This extended cash runway is significant as it fully funds their Phase 3 HERO trial of ARD-101 for Prader-Willi Syndrome through its expected data readout in early 2026.

The company's recent IPO in February 2025 was successful, generating $87.5 million in net proceeds after raising $97.9 million gross. This capital infusion strengthens Aardvark's ability to advance its clinical pipeline without immediate financing concerns.

R&D expenses increased substantially to $7.8 million for Q1 2025, up from $1.2 million in Q1 2024 – a 550% increase. This acceleration in R&D spending reflects the company's progression into more expensive late-stage clinical development for ARD-101. Similarly, G&A expenses rose to $2.7 million from $0.9 million year-over-year, largely due to the transition to public company operations.

The net loss widened to $9.3 million for Q1 2025 compared to $2.2 million in Q1 2024, representing the increased investment in clinical programs. The burn rate appears manageable given the cash runway projection.

Aardvark's focus on targeting anti-hunger signaling for metabolic diseases, particularly through ARD-101's novel mechanism that reduces fasting discomfort without decreasing food desirability or causing nausea, positions it uniquely in the competitive landscape of metabolic disease treatments. The Phase 3 HERO trial for Prader-Willi Syndrome represents a strategic entry into rare disease therapeutics with potentially less competitive pressure than the broader obesity market.

• Phase 3 HERO trial of ARD-101 for the treatment of hyperphagia associated with Prader-Willi Syndrome (PWS); data readout expected in early 2026
• $151.3 million in cash, cash equivalents, and short-term investments supports projected operations into 2027
  
  

SAN DIEGO, May 14, 2025 (GLOBE NEWSWIRE) -- Aardvark Therapeutics, Inc. (Aardvark) (Nasdaq: AARD), a clinical-stage biopharmaceutical company focused on developing novel, small-molecule therapeutics to activate innate homeostatic pathways for the treatment of metabolic diseases, today reported financial results for the first quarter ended March 31, 2025, and provided business highlights.

“We believe that there is a significant, untapped opportunity to target anti-hunger signaling to treat rare metabolic diseases and obesity. Our lead candidate, ARD-101, is intended to address hunger by lowering the discomfort of fasting without notably decreasing the desirability of food or inducing nausea,” said Tien Lee, M.D., Founder and Chief Executive Officer of Aardvark. “The Phase 3 HERO study of ARD-101 in PWS shows our commitment to addressing unmet needs in this community.”

Summary of Business Highlights

• In February 2025, Aardvark successfully completed its initial public offering (IPO), raising $97.9 million in gross proceeds. After deducting underwriting discounts, commissions, and offering expenses, the Company received approximately $87.5 million in net proceeds. Aardvark’s stock began trading under the symbol “AARD” on February 13, 2025.

Select First Quarter 2025 Financial Highlights

• Cash Position: As of March 31, 2025, Aardvark had cash, cash equivalents, and short-term investments of $151.3 million, which includes the net proceeds from the IPO in February 2025. Based on current operating plans, Aardvark believes that its existing cash, cash equivalents, and short-term investments, together with the proceeds from the IPO, will be sufficient to fund projected operations into 2027.
   
• R&D Expenses: Research and development expenses were $7.8 million and $1.2 million for the quarter ended March 31, 2025 and 2024, respectively. The $6.6 million increase for the quarter ended March 31, 2025, resulted from increased development costs primarily related to ARD-101 and an increase in personnel-related expenses.
   
• G&A Expenses: General and administrative expenses were $2.7 million and $0.9 million for the quarter ended March 31, 2025, and 2024, respectively. The $1.9 million increase for the quarter ended March 31, 2025, primarily resulted from increases in professional fees, facilities and other and personnel-related costs, which were partially related to commencing operations as a public company.
   
• Net loss: Net loss was $9.3 million and $2.2 million for the quarter ended March 31, 2025, and 2024, respectively.

About Aardvark Therapeutics, Inc.
Aardvark is a clinical-stage biopharmaceutical company developing novel, small-molecule therapeutics designed to suppress hunger for the treatment of PWS and metabolic diseases. Recognizing hunger (the discomfort from not having eaten recently) is a distinct neural signaling pathway separate from appetite (the reward-seeking, desirability of food). Our programs explore therapeutic applications in hunger-associated indications and potential complementary uses with anti-appetite therapies. Our lead compound, oral ARD-101, is in Phase 3 clinical development for the treatment of hyperphagia associated with PWS, a rare disease characterized by insatiable hunger. ARD-101 is also being studied in hypothalamic obesity. Aardvark is also developing ARD-201, a fixed-dose combination of ARD-101 with a DPP-4 inhibitor, with a goal of addressing some of the limitations of currently marketed GLP-1 therapies for the treatment of obesity and obesity-related conditions. For more information, visit aardvarktherapeutics.com.  

Forward-Looking Statements
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements.” These statements include, but are not limited to, statements concerning: Aardvark’s future results of operations and financial position, business strategy, product candidates, ongoing clinical trials, planned clinical trials, expected timing for data readouts and reporting topline results, anticipated cash runway, likelihood of success, as well as plans and objectives of management for future operations. The words, without limitation, “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these or similar identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: uncertainties related to potential delays in the commencement, enrollment and completion of clinical trials; the risk that we may use our capital resources sooner than expected and that they may be insufficient to allow us to achieve our anticipated milestones; risks related to our dependence on third parties for manufacturing, shipping and clinical and preclinical trials; the risk that results from earlier clinical trials and preclinical studies may not necessarily be predictive of future results; and other factors discussed in the “Risk Factors” section of Aardvark’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 to be filed with the Securities and Exchange Commission on or about the date hereof. When evaluating Aardvark’s business and prospects, careful consideration should be given to these risks and uncertainties. Any forward-looking statements contained in this press release are based on the current expectations of Aardvark’s management team and speak only as of the date hereof, and Aardvark specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact:
Carolyn Hawley, Inizio Evoke Comms
(619) 849-5382
Carolyn.hawley@inizioevoke.com

Aardvark Therapeutics, Inc. Unaudited Condensed Consolidated Statements of Operations (in thousands, except share and per share data)
		Three Months Ended March 31,
		2025			2024
Operating expenses:
Research and development	$	7,755		$	1,207
General and administrative		2,715			861
Credit loss—related party accounts receivable		—			103
Total operating expenses		10,470			2,171
Loss from operations		(10,470	)		(2,171	)
Total other income (expense), net		1,160			(7	)
Net loss	$	(9,310	)	$	(2,178	)
Net loss per share of common stock, basic and diluted	$	(0.71	)	$	(0.55	)
Weighted-average shares used in net loss per share calculation		13,194,718			3,967,333

Aardvark Therapeutics, Inc. Condensed Consolidated Balance Sheets (in thousands, except share amounts)
		March 31,			December 31,
		2025			2024
		(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	26,504		$	61,641
Short-term investments		124,756			12,022
Prepaid expenses and other current assets		3,294			474
Total current assets		154,554			74,137
Operating lease right-of-use asset		628			735
Other assets		1,843			2,635
Total assets	$	157,025		$	77,507
Liabilities, Convertible Preferred Stock and Stockholders’ Equity  (Deficit)
Current liabilities:
Accounts payable	$	2,556		$	2,298
Accrued liabilities		3,030			2,291
Operating lease liability, current portion		390			338
Total current liabilities		5,976			4,927
Operating lease liability, net of current portion		336			441
Other long-term liabilities		24			26
Total liabilities		6,336			5,394
Commitments and contingencies
Convertible preferred stock		—			126,756
Stockholders’ equity (deficit):
Common stock		—			—
Additional paid-in-capital		218,282			3,684
Accumulated other comprehensive income		44			—
Accumulated deficit		(67,637	)		(58,327	)
Total stockholders’ equity (deficit )		150,689			(54,643	)
Total liabilities, convertible preferred stock, and stockholders’
equity (deficit)	$	157,025		$	77,507

FAQ

What were Aardvark Therapeutics (AARD) Q1 2025 financial results?

Aardvark reported a net loss of $9.3 million, with R&D expenses of $7.8 million and G&A expenses of $2.7 million. The company had $151.3 million in cash and investments as of March 31, 2025.

How much did Aardvark Therapeutics raise in its IPO in February 2025?

Aardvark raised $97.9 million in gross proceeds from its IPO, resulting in approximately $87.5 million in net proceeds after deducting underwriting discounts, commissions, and offering expenses.

What is Aardvark Therapeutics' (AARD) lead drug candidate and its target?

ARD-101 is Aardvark's lead candidate, currently in Phase 3 HERO trial for treating hyperphagia associated with Prader-Willi Syndrome (PWS). Data readout is expected in early 2026.

How long will Aardvark Therapeutics' current cash position last?

Based on current operating plans, Aardvark's cash position of $151.3 million is expected to fund projected operations into 2027.