[10-Q] Entera Bio Ltd. Quarterly Earnings Report
Filing Impact
Filing Sentiment
Form Type
10-Q
Entera Bio (ENTX) filed its Q3 2025 10‑Q, showing a clinical-stage profile with minimal revenue and ongoing losses. For the nine months ended September 30, 2025, revenue was $42 thousand and net loss was
Cash, cash equivalents and restricted cash totaled
Management states substantial doubt about continuing as a going concern. The company believes existing cash supports operations through the middle of Q3 2026, but starting the EB613 Phase 3 program will require additional funding. The FDA agreed that a single 24‑month Phase 3 with total hip BMD as the primary endpoint could support an NDA for EB613, letting the program advance. Capital actions included net ATM proceeds of
Shares outstanding were 45,664,506 as of September 30, 2025, and 45,857,242 as of November 10, 2025.
Positive
- None.
Negative
- Going concern uncertainty: management states substantial doubt about the company’s ability to continue as a going concern without additional financing.
Insights
Cash runway extends to mid‑Q3 2026, but Phase 3 needs funding.
Entera Bio reported nine‑month net loss of
Management disclosed substantial doubt about continuing as a going concern. While they estimate runway through the middle of
Financing flexibility includes the ATM program (net
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
For the quarterly period ended September 30, 2025
OR
For the transition period from to
Commission File Number: 001-38556
(Exact name of Registrant as specified in its charter)
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Not applicable
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
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Title of Each Class
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Trading Symbol
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Name of Each Exchange on Which Registered
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Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Large accelerated filer
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Accelerated filer
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Smaller reporting company
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Emerging growth company
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)
Yes ☐ No ☒
As of November 10, 2025, the registrant had 45,857,242 ordinary shares, par value NIS 0.0000769 per share (“Ordinary Shares”) outstanding.
Table of Contents
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS | 1 | |
PART I – FINANCIAL INFORMATION | 3 | |
Item 1. | Financial Statements | 3 |
Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 (unaudited) | 5 | |
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 (unaudited) | 6 | |
Condensed Consolidated Statement of Changes in Shareholders’ Equity for the three and nine months ended September 30, 2025 and 2024 (unaudited) | 7 | |
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (unaudited) | 8 | |
Notes to Condensed Consolidated Financial Statements (unaudited) | 9 | |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 17 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 30 |
Item 4. | Controls and Procedures | 30 |
PART II – OTHER INFORMATION | 31 | |
Item 1. | Legal Proceedings | 31 |
Item 1A. | Risk Factors | 31 |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 32 |
Item 3. | Defaults Upon Senior Securities | 32 |
Item 4. | Mine Safety Disclosures | 32 |
Item 5. | Other Information | 32 |
Item 6. | Exhibits | 32 |
SIGNATURES | 33 | |
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q (this “Quarterly Report”) contains “forward-looking statements,” as that term is defined under the Private Securities Litigation Reform Act of 1995 (“PSLRA”), Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Various statements in this Quarterly Report are “forward-looking statements” within the meaning of the PSLRA and other U.S. Federal securities laws. In addition, historic results of scientific research and clinical and preclinical trials do not guarantee that the conclusions of future research or trials would not be different, and historic results referred to in this Quarterly Report may be interpreted differently in light of additional research and clinical and preclinical trial results. Forward-looking statements include all statements that are not historical facts. We have based these forward-looking statements largely on our management’s current expectations and future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Forward-looking statements involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this Quarterly Report regarding our strategy, future operations, future financial position, projected costs, prospects, plans and objectives of management are forward-looking statements. These statements are subject to risks and uncertainties and are based on information currently available to our management. Words including, but not limited to, “anticipate,” “believe,” “contemplates,” “continue,” “could,” “design,” “estimate,” “expect,” “intend,” “likely,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “will,” “would,” “seek,” “should,” “target,” or the negative of these terms and similar expressions or words, identify forward-looking statements. The events and circumstances reflected in our forward-looking statements may not occur and actual results could differ materially from those projected in our forward-looking statements. These factors include those described in “Part II, Item 1A-Risk Factors” of this Quarterly Report and in “Part I, Item 1A-Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”). Meaningful factors that could cause actual results to differ from those expressed in forward-looking statements include, but are not limited to:
| • | Clinical development involves a lengthy and expensive process with uncertain outcomes. We may incur additional costs and experience delays in developing and commercializing or be unable to develop or commercialize our current and future product candidates; |
| • | The regulatory approval processes of the U.S. Food and Drug Administration (“FDA”) and comparable foreign authorities are lengthy, time-consuming and inherently unpredictable, and if we are ultimately unable to obtain regulatory approval for our product candidates, our business will be materially harmed; |
| • | Preclinical development is uncertain. Our preclinical programs may experience delays or may never advance to clinical trials, which would adversely affect our ability to obtain regulatory approvals or commercialize these programs on a timely basis or at all; |
| • | Positive results from preclinical studies and early-stage clinical trials may not be predictive of future results. Initial positive results in any of our clinical trials may not be indicative of results obtained when the trial is completed or in later stage trials; |
| • | The scope, progress and costs of developing our product candidates such as EB613 for osteoporosis and EB612 or other oral peptides for hypoparathyroidism, obesity, metabolic disorders and gastrointestinal rare diseases may alter over time based on various factors such as regulatory requirements, collaboration agreements, the competitive environment and new data from pre-clinical and clinical studies; |
| • | The accuracy of our estimates regarding expenses, capital requirements, the sufficiency of our cash resources and the need for additional financing; |
| • | Our ability to continue as a going concern absent access to sources of liquidity; |
| • | Our ability to raise additional funds or consummate strategic partnerships to offset additional required capital to pursue our business objectives, which may not be available on acceptable terms or at all. A failure to obtain this additional capital when needed, or failure to consummate strategic partnerships, could delay, limit or reduce our product development, and other operations; |
1
| • | Even if a current or future product candidate receives marketing approval, it may fail to achieve the degree of market acceptance by physicians, patients, third-party payors and others in the medical community necessary for commercial success; |
| • | The successful commercialization of our product candidates, if approved, will depend in part on the extent to which governmental authorities and third-party payors establish adequate coverage and reimbursement levels and pricing policies; |
| • | Failure to obtain or maintain coverage and adequate reimbursement for our product candidates, if approved, could limit our ability to market those products and decrease our ability to generate revenue; |
| • | If we are unable to obtain and maintain patent protection for our product candidates, or if the scope of the patent protection obtained is not sufficiently broad or robust, our competitors could develop and commercialize products similar or identical to ours, and our ability to successfully commercialize our product candidates may be adversely affected; |
| • | Because we do not anticipate paying any cash dividends on our capital stock in the foreseeable future, capital appreciation, if any, will be your sole source of gain; |
| • | Our reliance on third parties to conduct our clinical trials and on third-party suppliers to supply or produce our product candidates; |
| • | Our interpretation of FDA feedback and guidance and how such guidance may impact our clinical development plan; |
| • | Our ability to use and expand our oral peptide technology (“N-Tab™”) to additional product candidates; |
| • | Our operation as a development stage company with limited operating history and a history of operating losses and our ability to fund our operations going forward; |
| • | Our competitive position with respect to other products on the market or in development for the treatment of osteoporosis, hypoparathyroidism, short bowel syndrome and other rare gastrointestinal disorders, obesity, metabolic conditions and other disease categories we pursue; |
| • | Our ability to establish and maintain development and commercialization collaborations; |
| • | Our ability to manufacture and supply enough material to support our clinical trials and any potential future commercial requirements; |
| • | The size of any market we may target and the adoption of our product candidates, if approved, by physicians and patients; |
| • | Our ability to obtain, maintain and protect our intellectual property and operate our business without infringing, misappropriating, or otherwise violating any intellectual property rights of others; |
| • | Our ability to retain key personnel and recruit additional qualified personnel; |
| • | Our ability to comply with laws and regulations that currently apply or become applicable to our business; |
| • | Our ability to manage growth; and |
| • | Notwithstanding the current ceasefire between Israel and Hamas, the ultimate resolution of the Israel-Hamas conflict, that has been ongoing since October 2023, including involvement from Hezbollah, Iran and its proxies in the Middle East, such as the Houthis in Yemen and militias in Iraq and Syria, and their impact on our operations and workforce, remains unknown. |
All forward-looking statements contained in this Quarterly Report are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We caution investors not to rely heavily on the forward-looking statements we make. Except as required by applicable law, we are under no duty, and expressly disclaim any obligation, to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult all further disclosures we make in each annual, quarterly or current report that we file with the Securities and Exchange Commission (“SEC”).
We encourage you to read Part II, Item 1A of this Quarterly Report and Part I, Item 1A of our 2024 Annual Report, each entitled “Risk Factors,” and Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operation—Liquidity and Capital Resources” of this Quarterly Report for additional discussion of the risks and uncertainties associated with our business. There can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, us. Therefore, no assurance can be given that the outcomes stated in such forward-looking statements and estimates will be achieved.
2
PART I.
ITEM 1. FINANCIAL STATEMENTS
ENTERA BIO LTD.
UNAUDITED CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2025
3
TABLE OF CONTENTS
Page | |
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS: | |
Condensed Consolidated Balance Sheets (unaudited) | 5 |
Condensed Consolidated Statements of Operations (unaudited) | 6 |
Condensed Consolidated Statements of Changes in Shareholders' Equity (unaudited) | 7 |
Condensed Consolidated Statements of Cash Flows (unaudited) | 8 |
Notes to the Condensed Consolidated Financial Statements (unaudited) | 9 |
4
ENTERA BIO LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except share data)
(Unaudited)
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Assets
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September 30,
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December 31,
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2025
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2024
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CURRENT ASSETS:
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Cash and cash equivalents
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Accounts receivable
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Restricted cash
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Other current assets
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TOTAL CURRENT ASSETS
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NON-CURRENT ASSETS:
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Property and equipment, net
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Operating lease right-of-use assets
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Restricted deposit
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Funds in respect of employee rights upon retirement
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TOTAL NON-CURRENT ASSETS
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TOTAL ASSETS
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Liabilities and shareholders' equity
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CURRENT LIABILITIES:
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Accounts payable
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Accrued expenses and other payables
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Current maturities of operating lease
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TOTAL CURRENT LIABILITIES
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NON-CURRENT LIABILITIES:
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Operating lease liabilities
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Other long-term liability
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Liability for employee rights upon retirement
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TOTAL NON-CURRENT LIABILITIES
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TOTAL LIABILITIES
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COMMITMENTS AND CONTINGENCIES
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SHAREHOLDERS' EQUITY:
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Ordinary shares, NIS
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Additional paid-in capital
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Accumulated other comprehensive income
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Accumulated deficit
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(
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(
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TOTAL SHAREHOLDERS' EQUITY
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
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The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
5
ENTERA BIO LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
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Nine Months Ended
September 30,
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Three Months Ended
September 30,
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2025
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2024 | 2025 |
2024
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REVENUES
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COST OF REVENUES
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GROSS PROFIT
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OPERATING EXPENSES:
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Research and development, net
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General and administrative
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TOTAL OPERATING EXPENSES
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OPERATING LOSS
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FINANCIAL INCOME, NET
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NET LOSS
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LOSS PER SHARE BASIC AND DILUTED
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WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE
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The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
6
ENTERA BIO LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
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Ordinary shares
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Number of shares issued
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Amounts
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Additional paid-in capital
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Accumulated other Comprehensive income
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Accumulated deficit
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Total
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BALANCE AT JANUARY 1, 2025
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Net loss
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-
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Exercise of warrants to Ordinary Shares
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*
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Exercise of options to Ordinary Shares
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*
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Issuance of Ordinary Shares under collaboration agreement, net
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*
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Issuance of Ordinary Shares under ATM program, net of issuance costs
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*
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Vested restricted share units
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*
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-
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Share-based compensation
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-
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BALANCE AT SEPTEMBER 30, 2025
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BALANCE AT July 1, 2025
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Net loss
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-
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Exercise of warrants to Ordinary Shares
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*
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Exercise of options to Ordinary Shares
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-
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Issuance of Ordinary Shares under ATM program, net of issuance costs
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*
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Share-based compensation
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-
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BALANCE AT SEPTEMBER 30, 2025
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(
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BALANCE AT JANUARY 1, 2024
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(
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Net loss
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-
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(
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(
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Exercise of warrants to Ordinary Shares
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*
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Exercise of options to Ordinary Shares
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*
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Issuance of Ordinary Shares under ATM program, net of issuance costs
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*
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Vested restricted share units
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*
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*
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Share-based compensation
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-
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BALANCE AT SEPTEMBER 30, 2024
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(
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BALANCE AT July 1, 2024
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(
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Net loss
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-
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(
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Exercise of options to Ordinary Shares
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*
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Vested restricted share units
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*
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*
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Share-based compensation
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-
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BALANCE AT SEPTEMBER 30, 2024
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(
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* Represents an amount less than one thousand U.S. dollars.
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
7
ENTERA BIO LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
(Unaudited)
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Nine months
ended September 30, |
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CASH FLOWS FROM OPERATING ACTIVITIES:
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2025
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2024
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Net loss
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Adjustments required to reconcile net loss to net cash used in operating activities:
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Depreciation
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Share-based compensation
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Finance income, net
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Changes in operating asset and liabilities:
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Increase in other current assets
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Decrease (increase) in accounts receivable
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Increase in accounts payable
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Increase (decrease) in accrued expenses and other payables and other long-term liability
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Net cash used in operating activities
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CASH FLOWS FROM INVESTING ACTIVITIES:
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Purchase of property and equipment
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Net cash used in investing activities
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CASH FLOWS FROM FINANCING ACTIVITIES:
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Proceeds from issuance of Ordinary Shares under ATM program
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Issuance of Ordinary Shares under collaboration agreement
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Issuance cost
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Exercise of warrants and options to Ordinary Shares
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Net cash provided by financing activities
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EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS
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INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND DEPOSITS
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(
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CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND DEPOSITS AT BEGINNING OF THE PERIOD
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CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND DEPOSITS AT END OF THE PERIOD
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Reconciliation in amounts on consolidated balance sheets:
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Cash and cash equivalents
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Restricted cash and deposits
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Total cash and cash equivalents and restricted cash and deposit
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SUPPLEMENTAL DISCLOSURE OF CASH FLOW TRANSACTIONS:
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Interest received
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SUPPLEMENTARY INFORMATION ON INVESTING AND FINANCING ACTIVITIES NOT INVOLVING CASH FLOWS:
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Operating lease right of use assets obtained in exchange for new operating lease liabilities
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8
ENTERA BIO LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(U.S. dollars in thousands, except share and per share data)
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
NOTE 1 - DESCRIPTION OF BUSINESS
| a. |
Entera Bio Ltd. (collectively with its subsidiary, “Entera” or the "Company") was incorporated on September 30, 2009 and commenced operations on June 1, 2010. On January 8, 2018, the Company incorporated its wholly owned subsidiary, Entera Bio Inc., in Delaware, United States.
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Entera is focused on developing first-in-class oral tablet formats of peptides or protein replacement therapies. The Company leverages its N-Tab™ platform, which is designed to simultaneously stabilize the peptide in the gastrointestinal tract and promote its absorption into the bloodstream. The Company concentrates on underserved, chronic medical conditions for which oral administration of a protein therapy has the potential to significantly shift a treatment paradigm.
Entera’s most advanced product candidate, EB613, oral PTH(1-34), is being developed as the first oral, osteoanabolic (bone building) once-daily tablet treatment for post-menopausal women with low bone mineral density (“BMD”) and high-risk osteoporosis. EB613 is intended to provide an oral anabolic treatment earlier in an osteoporosis patient’s journey to increase skeletal mass, reduce the risk of fracture and consequently limit the progression of the disease, and its associated disability and mortality. A placebo-controlled, dose-ranging Phase 2 study of EB613 tablets in 161 post-menopausal women with low BMD and osteoporosis met primary and secondary endpoints. On July 28, 2025, the Company announced that in a written response to a Type A meeting request, the FDA agreed that the NDA filing for EB613 (oral PTH (1-34), teriparatide) would be supported by a single multinational, randomized, double-blind, placebo-controlled, 24-month phase 3 study in women with postmenopausal osteoporosis, where change in total hip BMD is evaluated as the primary endpoint, and incidence of new or worsening vertebral fractures is evaluated as the key secondary endpoint.
The EB612 program is being developed as the first oral PTH(1-34) tablet peptide replacement therapy for patients with hypoparathyroidism.
In addition, Entera is developing the first oral oxyntomodulin, a dual targeted GLP1/glucagon peptide, in tablet form for the treatment of obesity and metabolic syndromes pursuant to a 2025 collaboration and license agreement (the “2025 Collaboration Agreement”) with OPKO Health, Inc. (“OPKO”); and the first oral GLP-2 peptide as an injection-free alternative for patients suffering from rare malabsorption conditions such as short bowel syndrome, pursuant to a 2023 research collaboration agreement with OPKO.
| b. |
The Company's ordinary shares, NIS
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| c. |
Because the Company is engaged in research and development activities, it has not derived significant income from its operations, and, since its inception in 2009, the Company has incurred an accumulated deficit in the amount of $
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9
ENTERA BIO LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
NOTE 1 - DESCRIPTION OF BUSINESS (Cont.)
These factors raise substantial doubt as to the Company's ability to continue as a going concern. Management continually evaluates various financing alternatives and strategic collaborations, as the Company will need to finance future research and clinical development with additional capital. However, there is no certainty that the Company will be able to obtain such funding. These condensed consolidated financial statements do not include any adjustments that may be necessary should the Company be unable to continue as a going concern.
| d. |
In October 2023, Israel was attacked by Hamas, a terrorist organization and entered a state of war. Since the commencement of these events, there have been additional active hostilities, including with Hezbollah in Lebanon, the Houthi movement which controls parts of Yemen, and with Iran. In response to ongoing Iranian aggression and support of proxy attacks against Israel, on June 12, 2025, Israel conducted a series of preemptive defensive air strikes in Iran targeting Iran’s nuclear program and military commanders. On June 21, 2025, U.S. President Donald Trump announced that the United States had conducted air strikes against three nuclear sites within Iran. On October 9, 2025, a ceasefire had been reached. Israel, Hamas, the United States and other countries in the region agreed to a framework for a ceasefire in Gaza between Israel and Hamas. How long and how severe the current conflicts in Gaza, Northern Israel, Lebanon, Iran or the broader region become is unknown at this time and any continued clash among Israel, Hamas, Hezbollah, Iran or other countries or militant groups in the region may escalate in the future into a greater regional conflict. The Company’s research personnel and some management personnel are located in Israel; however other core activities including clinical, regulatory and supply chain are located outside of Israel.
Currently, the Company’s activities in Israel remain largely unaffected by the foregoing events. During the nine months ended September 30, 2025 and as of December 31, 2024, the impact of such events on the Company’s results of operations and financial condition was immaterial.
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NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
| a. |
Basis of presentation of the financial statements
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These unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") for interim financial statements. Accordingly, they do not include all of the information and notes required by U.S. GAAP for annual financial statements. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company’s consolidated financial position as of September 30, 2025, the consolidated results of operations and statements of changes in shareholders' equity for the three and nine-month periods ended September 30, 2025 and 2024, and cash flows for the nine-month periods ended September 30, 2025 and 2024.
The consolidated results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025.
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ENTERA BIO LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Cont.)
These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company as of and for the year ended December 31, 2024, as filed with the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on March 28, 2025.
| b. |
Loss per share
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Basic loss per share is computed on the basis of net loss for the period divided by the weighted average number of outstanding ordinary shares and pre-funded warrants during the period. Each outstanding pre-funded warrant has no expiration and is exercisable at a price of NIS 0.0000769 per ordinary share.
Diluted loss per share is based upon the weighted average number of ordinary shares and ordinary share equivalents outstanding when dilutive. Ordinary share equivalents include outstanding stock options, warrants and restricted share units (“RSUs”), which are included under the treasury stock method when dilutive. The calculation of diluted loss per share does not include options, warrants and RSUs exercisable into 17,016,053 and 17,136,035 ordinary shares for the nine months ended September 30, 2025 and 2024, respectively, and 17,806,128 and 17,276,113 ordinary shares for the three months ended September 30, 2025 and 2024, respectively, because the effect would have been anti-dilutive.
| c. |
Newly issued and recently adopted accounting pronouncements:
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Recently issued accounting pronouncements not yet adopted
In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. This guidance is intended to enhance the transparency and decision-usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to disclosure regarding rate reconciliation and income taxes paid both in the U.S. and in foreign jurisdictions. ASU 2023-09 became effective for fiscal years beginning after December 15, 2024 and may be applied either retrospectively or prospectively, at the Company’s discretion. Based on the Company’s evaluation of this guidance, no material impact is expected on its consolidated financial statement disclosures.
In November 2024, the FASB issued ASU 2024-03 “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”, which requires disclosure about the types of costs and expenses included in certain expense captions presented on the income statement. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating this guidance to determine the impact it may have on its condensed consolidated financial statements disclosures.
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ENTERA BIO LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
NOTE 3 - EQUITY AND SHARE-BASED COMPENSATION
Changes in Share Capital:
| a. |
On September 2, 2022, the Company entered into a sales agreement with Leerink Partners LLC (formerly known as SVB Securities LLC), as sales agent, to implement an ATM program under which the Company had originally been able from time to time offer and sell up to
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On January 10, 2025, the Company filed a supplement to the prospectus supplement relating to the Leerink ATM Program, which provides the Company the ability to sell up to an additional
During the nine months ended September 30, 2025, the Company issued an aggregate of
| b. |
On January 15, 2025, the Company issued
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| c. |
In March 2025, in connection with the execution of a collaboration and license agreement (the “2025 Collaboration Agreement”) with OPKO, the Company issued and sold to OPKO an aggregate of
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| d. |
During the nine months ended September 30, 2025,
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12
ENTERA BIO LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
NOTE 3 - EQUITY AND SHARE-BASED COMPENSATION (Cont.)
Share-based Compensation:
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On January 15, 2025, an aggregate of
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| b. |
On April 28, 2025, the board of directors approved the following options grants:
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options to purchase an aggregate of |
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options to purchase an aggregate of |
These options vest over
In addition, the board of directors approved the grant of 259,650 RSUs to executive officers, of which grant 233,334 RSUs were subject to shareholder approval, which was obtained at a meeting of the Company’s shareholders held on July 16, 2025. The RSUs vest in four equal quarterly installments over a one-year period that started on April 28, 2025. The fair value of the RSUs at the grant date was $536 with a share price ranging from $2.04 to $2.28 per share.
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ENTERA BIO LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
NOTE 3 - EQUITY AND SHARE-BASED COMPENSATION (Cont.)
The fair value of each option granted was estimated at the date of grant using the Black-Scholes option-pricing model, using the following assumptions:
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Nine months
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Exercise price
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NOTE 4 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
Balance sheets:
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September 30,
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December 31,
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Other current assets:
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Accrued expenses and other payables:
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2024
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NOTE 5 - COLLABORATION AND RESEARCH AGREEMENTS
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In April 2024, the Company entered into a material transfer and research project agreement with a third party. According to the agreement, the third party will pay the Company a monthly payment for the research services, as well as reimbursement for external expenses based on an agreed budget. During the first quarter of 2025, the Company completed the first stage of the research services under this agreement.
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For the three and nine months ended September 30, 2025, the Company recognized $0 and $42 in revenues, respectively, from this agreement.
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ENTERA BIO LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
NOTE 5 - COLLABORATION AND RESEARCH AGREEMENTS (Cont.)
| b. |
On March 16, 2025, the Company entered into the 2025 Collaboration Agreement with OPKO and its wholly owned subsidiary, OPKO Biologics Ltd., to collaborate with respect to the preclinical and clinical development and decision making related to the oral delivery of a dual agonist GLP-1/glucagon peptide in an oral dosage form using Entera’s N-Tab™ technology platform for the treatment of obesity, metabolic and fibrotic disorders in humans (the “Program”). The Program combines OPKO’s proprietary long-acting oxyntomodulin (OXM, dual targeted GLP-1/Glucagon agonist, OPK-88006) analog and Entera’s proprietary N-Tab™ technology.
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Under the 2025 Collaboration Agreement, the Company granted to OPKO an exclusive, sublicensable and non-transferable, worldwide license to certain of the Company's intellectual property and technology solely to develop, manufacture, and commercialize any GLP-1/glucagon dual agonist as an oral treatment form for the treatment of obesity, metabolic, cardiovascular, and fibrotic disorders in humans, and OPKO granted to the Company a non-exclusive, non-sublicensable and non-transferable license to certain of OPKO’s intellectual property and technology to the extent necessary for the Company to perform its obligations in relation to the Program, in each case subject to the exceptions contained therein.
Under the terms of the 2025 Collaboration Agreement, the Company and OPKO will retain 40% and 60%, respectively, of all proceeds deriving from the Program, and will be responsible for 40% and 60% of the Program’s development costs, respectively. Following the completion of the Phase 1 stage, the Company may continue to fund its 40% share of the Program to maintain its right to proceeds or to opt-out (the “Opt-Out”). If the Company exercises the Opt-Out, then the Company and OPKO will retain 15% and 85%, respectively , of all proceeds deriving from the Program, while OPKO will be solely responsible for ongoing development and commercialization funding of the Program.
In connection with the execution of the 2025 Collaboration Agreement, the Company issued and sold to OPKO an aggregate of 3,685,226 ordinary shares for a total purchase price of $8.0 million, representing a purchase price per share equal to approximately $2.17 , which was the volume weighted average price per share for the 30 trading days immediately preceding the date of the 2025 Collaboration Agreement.
OPKO has agreed to a customary lockup with respect to such shares, and may not sell or otherwise transfer them for a period of 12 months following the date of the 2025 Collaboration Agreement, and OPKO has additionally agreed to a customary “standstill” provision, pursuant to which, for a 24-month period following the date of the 2025 Collaboration Agreement, OPKO may not acquire additional equity in the Company or otherwise take certain other actions, in each case without the Company’s consent.
The Company has agreed to use the proceeds from the sale of the foregoing ordinary shares solely to fund its development cost obligations under the 2025 Collaboration Agreement, and has entered into an escrow arrangement, together with OPKO and an escrow agent, into which such proceeds in an amount of $8,000 have been deposited. Such proceeds are presented under restricted cash in the condensed consolidated balance sheet, and will be disbursed to fund such development costs. If the 2025 Collaboration Agreement expires or is terminated for any reason, any funds remaining in such escrow will be disbursed to the Company.
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ENTERA BIO LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
NOTE 5 - COLLABORATION AND RESEARCH AGREEMENTS (Cont.)
The Company determined that the 2025 Collaboration Agreement is a collaboration agreement under the scope of ASC 808, as the parties are active participants and exposed to the risks and rewards of the collaborative activity. The consideration received was allocated to the collaboration component and the equity component.
The Company recognized as equity the fair value of the ordinary shares issued to OPKO net of issuance costs (issuance costs of $75 ) based on the fair value of the ordinary shares, which was the Nasdaq closing share price as of the 2025 Collaboration Agreement date. The remaining consideration was allocated to the agreement and presented under current other payables (an amount of $295 ) and Other long-term liabilities (an amount of $515 ) in the balance sheet and will be recognized as the Program is performed.
For the nine months ended September 30, 2025, the Company recognized net expenses of $190
NOTE 6 - SEGMENT INFORMATION
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The Company operates in Israel as a single operating segment. |
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Segment information:
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Nine Months Ended
September 30,
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Three Months Ended
September 30,
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Revenues
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Less:
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Research and development, net:
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Sub-contractors and consulting expense (EB613)
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Net expenses related to OPKO Collaboration Agreement
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Other segment expenses**
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* Other development expenses include materials and productions and others.
** Other segment expenses include payroll and related expenses, share-based compensation, legal and audit and related fees and others.
NOTE 7 - SUBSEQUENT EVENTS
In October and November 2025, 192,736 192,736 155,249
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis provides information we believe is relevant to an assessment and understanding of our results of operations, financial condition, liquidity and cash flows for the periods presented below. This discussion should be read in conjunction with the interim unaudited condensed consolidated financial statements and related notes contained elsewhere in this Quarterly Report, Part II, Item 1A-Risk Factors in this Quarterly Report, and Part I, Item 1A-Risk Factors in our 2024 Annual Report. As discussed in the section above titled “Cautionary Note Regarding Forward-Looking Statements,” the following discussion contains forward-looking statements that are based upon our current expectations, including with respect to our future operations, revenues and operating results. Our actual results may differ materially from those anticipated in such forward-looking statements as a result of various factors. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed in the section titled “Risk Factors” included under Part II, Item 1A below, as well as in Part I, Item 1A-Risk Factors in our 2024 Annual Report.
Unless otherwise provided, references to the “Company,” “we,” “us” and “our” refer to Entera Bio Ltd. and its consolidated subsidiary.
Overview
Entera is a clinical stage company focused on developing first-in-class oral tablet formats of peptides or protein replacement therapies. We concentrate on underserved, chronic medical conditions for which oral administration of a protein therapy has the potential to significantly shift a treatment paradigm. Our pipeline includes five differentiated, first-in-class oral peptide programs targeting PTH(1-34), GLP-1 and GLP-2.
Currently, most protein therapies are administered via frequent intravenous, subcutaneous, or intramuscular injections. In chronic diseases where patients require persistent management, these cumbersome, often painful and high-priced injections can create a major treatment gap.
From a technical standpoint, oral delivery of therapeutic proteins is challenging due to the enzymatic degradation within the gastrointestinal tract and poor absorption into the blood stream due to the proteins’ polarity and molecular weight. We leverage our N-Tab™ platform which is designed to simultaneously stabilize the peptide in the gastrointestinal tract and promote its absorption into the bloodstream.
EB613 Program
Our most advanced product candidate, EB613, oral PTH(1-34), is being developed as the first oral, osteoanabolic (bone building) once-daily tablet treatment for post-menopausal women with low bone mineral density (“BMD”) and high-risk osteoporosis. It is estimated that 50 percent of women and 20 percent of men over the age of 50 are at risk of a fragility fractures and approximately 1 in 5 adults will die within the year following a hip fracture. Postmenopausal osteoporosis afflicts more women than cancer and cardiovascular disease and is a serious health concern for an estimated 200 million women globally.
EB613 is intended to provide an oral anabolic treatment earlier in an osteoporosis patient’s journey to increase skeletal mass, reduce the risk of fracture and consequently limit the progression of the disease, and its associated disability and mortality. A placebo controlled, dose ranging Phase 2 study of EB613 tablets (n= 161) met primary (pharmacodynamic/bone turnover biomarker) and secondary endpoints (BMD). In April 2024, phase 2 data was published in the Journal of Bone and Mineral Research (JBMR).
Following Type C and Type D meetings with the FDA, we announced in 2023 the FDA’s concurrence that a 2-year, placebo-controlled phase 3 (registrational) study with Total Hip BMD as primary endpoint could support a new drug application (“NDA”) for EB613; however, the BMD endpoint remained unqualified as a surrogate endpoint by the FDA. In November 2023, the American Society for Bone and Mineral Research (ASBMR) announced that the Study to Advance BMD as a Regulatory Endpoint (SABRE) project team had submitted its full qualification plan to the FDA for the use of BMD as a surrogate endpoint for fractures in future trials of new anti-osteoporosis drugs. In March 2024, the ASBMR announced that the FDA had communicated to the SABRE project team that a ruling to qualify the treatment-related change in BMD as a surrogate endpoint for fractures in future trials of new anti-osteoporosis drugs would be provided within 10 months. The EB613 osteoporosis clinical program has been developed under the auspices of this new approach to osteoporosis drug development.
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On July 28, 2025, we announced that in a written response to a Type A meeting request, the FDA agreed with our proposal that the NDA filing for EB613 (oral PTH (1-34), teriparatide) would be supported by a single multinational, randomized, double-blind, placebo-controlled, 24-month phase 3 study in women with postmenopausal osteoporosis, where change in total hip BMD is evaluated as the primary endpoint, and incidence of new or worsening vertebral fractures is evaluated as the key secondary endpoint.
While the FDA’s anticipated qualification of SABRE is still expected in 2025, the FDA’s concurrence with our proposal allows us to advance our clinical program without having to wait for such qualification.
In September and April 2025, the effects of EB613 on trabecular and cortical bone indices based on a 3D-Shaper DXA post-hoc analysis of Phase 2 results were presented at the American Society for Bone and Mineral Research (“ASBMR”) 2025 Annual Meeting and the 2025 World Congress on Osteoporosis, respectively. The data using 3D-DXA modelling showed that after six months of treatment, EB613 2.5 mg demonstrated significant increases in both trabecular and cortical bone parameters as compared with placebo. Mechanistically, the findings suggest that bone strengthening and fracture resistance may occur rapidly with EB613.
In September and April 2025, the effects of EB613 on trabecular and cortical bone indices based on a 3D-Shaper DXA post-hoc analysis of Phase 2 results were presented at the American Society for Bone and Mineral Research (“ASBMR”) 2025 Annual Meeting and the 2025 World Congress on Osteoporosis, respectively. The data using 3D-DXA modelling showed that after six months of treatment, EB613 2.5 mg demonstrated significant increases in both trabecular and cortical bone parameters as compared with placebo. Mechanistically, the findings suggest that bone strengthening and fracture resistance may occur rapidly with EB613.
In October 2025, we reported clinical data from a post-hoc analysis of our Phase 2 trial of EB613, at the 2025 North American Menopause Society (NAMS) Annual Meeting in a poster presentation titled “EB613 (Oral PTH[1-34] Tablets) Increases BMD Over six Months in Early Postmenopausal Women with Low Bone Mass or Osteoporosis: A Phase 2 Randomized Trial (P-66)”. In this analysis of the Phase 2 trial, EB613 produced significant and consistent gains in BMD at the spine, femoral neck and hip in women within 10 years of menopause, with improvements comparable to those observed in women more than 10 years post-menopause.
In parallel, a new generation of EB613 is being developed with our N-Tab™ platform. At the ASBMR Annual Meeting in September 2025, preclinical data for our Next-Gen EB613 candidate from a cross-over pharmacokinetic mini-pig study was presented. This pre-clinical data showed comparable PK to the current formulation of EB613. We initiated a Phase 1 Safety and PK Study in November 2025 which will also serve as a first in man study of this new generation of EB613.
EB612 Program
Our product candidate, EB612, is being developed as the first oral PTH(1-34) tablet peptide replacement therapy for patients with hypoparathyroidism. With respect to our EB612 program, since 2023 we tested new generations of our N-Tab™ Technology with the naked PTH(1-34) peptide to assess the effectiveness of once or twice a day dosing regimens, and are collaborating with a third party on another peptide in this field. In June 2024, Phase 1 clinical data for a bid regimen of EB612 using unmodified PTH(1-34) was presented at the Endocrine Society ENDO 2024 Annual Meeting.
To date, Entera’s proprietary PTH tablets have been safely administered to a total of 255 subjects in Phase 1 studies and Phase 2 studies in osteoporosis and hypoparathyroidism, two diseases that remain underserved with the current standard of care and which disproportionately affect women. We believe these product candidates, if approved, hold the potential to become standards of care for patients with osteoporosis and hypoparathyroidism.
Our ability to deliver our oral PTH(1-34) peptide in a simple mini tablet format with reproduceable, dose dependent pharmacokinetics and rapid biological responses across gender, age, and health status was highlighted as part of two poster sessions at the ASBMR 2023 Annual Meeting. We believe our work to date has built the foundation for our oral PTH (1-34) tablets to potentially treat diverse patient populations, including younger men and women athletes at risk of stress fractures.
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Oral GLP-2 and Oral GLP-1/Glucagon Programs in Collaboration with OPKO Biologics
In September 2023, we entered into a research and collaboration agreement with OPKO Biologics, Inc., a subsidiary of OPKO Health, Inc. (collectively, “OPKO”). Under the terms of this agreement, OPKO agreed to supply its proprietary long-acting GLP-2 peptide and certain oxyntomodulin (OXM) analogs for the development of oral tablet candidates using our proprietary N-Tab™ technology. Under this agreement, we and OPKO have each agreed to be responsible for specific phases of development of the two oral peptides to the point of demonstrated in vivo feasibility.
In March 2024, we announced positive in vivo pharmacokinetic (PK) results from our collaborative research, combining a proprietary long acting GLP-2 agonist developed by OPKO with Entera’s proprietary N-Tab™ technology. The program is focused on developing the first and only GLP-2 peptide tablet alternative for patients suffering from short bowel syndrome and additional disorders involving mucosal inflammation and nutrient malabsorption. Currently, the only approved GLP-2 agonist requires daily subcutaneous injections.
OXM is a naturally occurring peptide hormone found in the colon, with glucagon-like-peptide 1 (GLP-1) and glucagon dual agonist activity that suppresses appetite and induces weight loss. OPKO has developed several proprietary, modified OXM analogs as potential candidates for treating obesity, including an injectable pegylated peptide which demonstrated safety in over 430 subjects and significant reductions in weight loss and decreased plasma triglyceride levels in over 110 subjects in completed phase 2 studies.
In September 2024, we announced topline pharmacokinetic/pharmacodynamic (PK/PD) results for the OXM program. The program is focused on developing the first oral dual agonist GLP-1/Glucagon peptide as a potential once-daily tablet treatment for patients with obesity and metabolic disorders using the N-Tab™ platform. Oral OXM exhibited significant systemic exposure across two in vivo models, a favorable PK profile and bioavailability. The high plasma concentrations with prolonged systemic exposure were consistent with the reported half-life for semaglutide (Rybelsus®), the only approved oral GLP-1 analog. Oral OXM showed a statistically significant reduction in plasma glucose levels compared with placebo.
Additionally, in March 2025, we and OPKO entered into the 2025 Collaboration Agreement (as defined and further described below under “Patent Transfer, Licensing Agreements and Grant Funding—Collaboration and License Agreement with OPKO”) with respect to the preclinical and clinical development and decision making related to the oral OXM program for the treatment of obesity, metabolic and fibrotic disorders in humans.
Given the scarcity of oral peptide treatments and potential safety challenges attributed to small molecule approaches, we believe oral OXM may address a significant number of patients suffering from chronic metabolic diseases.
In June 2025, a poster at ENDO2025 reported PK data from a mini-pig study of oral OPK-88006, a dual GLP-1/glucagon receptor agonist being developed under the OXM program in collaboration with OPKO, which showed plasma levels consistent with those reported in humans for the highest subcutaneous dose of Wegovy™ (semaglutide) weekly injection, a standard of care for the treatment of obesity. The reported pharmacological data supports a once-daily tablet regimen of this first-in-class oral dual agonist. A Phase 1 study is being planned and an Investigational New Drug (IND) application is expected to be filed with the FDA in the first half of 2026.
In June 2025, a poster at ENDO2025 reported PK data from a mini-pig study of oral OPK-88006, a dual GLP-1/glucagon receptor agonist being developed under the OXM program in collaboration with OPKO, which showed plasma levels consistent with those reported in humans for the highest subcutaneous dose of Wegovy™ (semaglutide) weekly injection, a standard of care for the treatment of obesity. The reported pharmacological data supports a once-daily tablet regimen of this first-in-class oral dual agonist. A Phase 1 study is being planned and an Investigational New Drug (IND) application is expected to be filed with the FDA in the first half of 2026.
In September 2025 pharmacokinetic data from a mini-pig study of OPK-8801003, our oral GLP-2 analog developed in collaboration with OPKO, were presented at the 47th European Society for Clinical Nutrition & Metabolism (ESPEN) Congress. The data demonstrated a plasma half-life approximately 18 times longer than teduglutide, in the same species. Oral administration achieved peak plasma levels of ~200 ng/mL and maintained systemic exposure (AUC ≈ 2 h•μg/mL) for over 24 hours with low variability, supporting once-daily oral dosing.
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Patent Transfer, Licensing Agreements and Grant Funding
Collaboration and License Agreement with OPKO
On March 16, 2025, we entered into a collaboration and license agreement (the “2025 Collaboration Agreement”) with OPKO to collaborate with respect to the preclinical and clinical development and decision making related to the Oral OXM program for the treatment of obesity, metabolic and fibrotic disorders in humans (the “Program”). The Program combines OPKO’s proprietary long-acting oxyntomodulin (OXM, dual targeted GLP-1/Glucagon agonist, OPK-88006) analog and Entera’s proprietary N-Tab™ technology.
Under the 2025 Collaboration Agreement, we granted to OPKO an exclusive, sublicensable and non-transferable, worldwide license to certain of our intellectual property and technology solely to develop, manufacture, and commercialize any GLP-1/Glucagon dual agonist as an oral treatment form for the treatment of obesity, metabolic, cardiovascular, and fibrotic disorders in humans, and OPKO has granted to us a non-exclusive, non-sublicensable and non-transferable license to certain of its intellectual property and technology to the extent necessary for us to perform our obligations in relation to the Program, in each case subject to the exceptions contained therein.
Under the terms of the 2025 Collaboration Agreement, we and OPKO will retain 40% and 60%, respectively, of all proceeds deriving from the Program, and will be responsible for 40% and 60% of the Program’s development costs, respectively. Following the completion of the Phase 1 stage, we may continue to fund our 40% share of the Program to maintain our right to proceeds or to opt-out (the “Opt-Out”). If we Opt-Out, then we and OPKO will retain 15% and 85%, respectively, of all proceeds deriving from the Program, while OPKO will be solely responsible for ongoing development and commercialization funding of the Program.
In connection with the execution of the 2025 Collaboration Agreement, we issued and sold to OPKO an aggregate of 3,685,226 Ordinary Shares for a purchase price of $8.0 million, representing a purchase price per share equal to approximately $2.17, which was the volume weighted average price per share for the 30 trading days immediately preceding the date of such agreement. OPKO has agreed to a customary lockup with respect to such shares, and may not sell or otherwise transfer them for a period of 12 months following the date of the 2025 Collaboration Agreement, and OPKO has additionally agreed to a customary “standstill” provision, pursuant to which, for a 24-month period following the date of the 2025 Collaboration Agreement, OPKO may not acquire additional equity in us or otherwise take certain other actions, in each case without our consent.
We have agreed to use the proceeds from the sale of the foregoing Ordinary Shares solely to fund our development cost obligations under the 2025 Collaboration Agreement, and we have entered into an escrow arrangement, together with OPKO and an escrow agent, into which such proceeds have been deposited, and from which such proceeds will be disbursed to fund such development costs. If the 2025 Collaboration Agreement expires or is terminated for any reason, any funds remaining in such escrow will be disbursed to us.
Oramed Patent Transfer Agreement
In 2011, we entered into the Patent Transfer Agreement with Oramed, pursuant to which Oramed assigned to us all of its rights, title and interest in the patent rights that Oramed licensed to us when we were originally organized, subject to a worldwide, royalty-free, exclusive, irrevocable, perpetual and sub-licensable license granted to Oramed under the assigned patent rights to develop, manufacture and commercialize products or otherwise exploit such patent rights in the fields of diabetes and influenza. Additionally, we agreed not to engage, directly or indirectly, in any activities in the fields of diabetes and influenza that involve the use of, or utilize, the patents underlying the Patent Transfer Agreement. Under the terms of the Patent Transfer Agreement, we agreed to pay Oramed royalties equal to 3% of our net revenues generated, directly or indirectly, from exploitation of the assigned patent rights, including the sale, lease or transfer of the assigned patent rights or sales of products or services covered by the assigned patent rights.
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Israeli Innovation Authority Grants
We have received grants of approximately $0.5 million from the Israeli Innovation Authority (“IIA”) to partially fund our PTH research and development for Osteoporosis. The grants are subject to certain requirements and restrictions under the Israeli Encouragement of Research, Development and Technological Innovation in Industry Law 5477 1984 (the “Research Law”). In general, until the grants are repaid with interest, royalties are payable to the Israeli government in the amount of 3% on revenues derived from sales of products or services developed in whole or in part using the IIA grants. The royalty rate may increase to 5%, with respect to approved applications filed following any year in which we achieve sales of over $70 million.
The amount that must be repaid may be increased up to six times the amount of the grant received and the interest. The rate of royalties may be accelerated and the royalty liability may increase (up to three times the amount of the grant amount and the interest), if manufacturing of the products developed with the grant money is transferred outside of the State of Israel. Moreover, a payment of up to 600% of the grant received may be required upon the transfer of any IIA-related know-how to a non-Israeli entity. We signed a contract with a U.K.-based contract manufacturing organization to produce and supply pills for trials performed worldwide. We believe that, because this production is not for commercial purposes, it will not affect the royalty rates to be paid to the IIA. Should the IIA successfully take a contrary position, the maximum royalties to be paid to the IIA will be approximately $1.5 million, which is three times the amount of the original grant (plus interest on the entire increased amount). Under a collaboration agreement that was previously mutually terminated in May 2023, from 2019 through March 31, 2023, we recognized an aggregate amount of $1.7 million of revenue in accordance with ASC 606, “Revenues from Contracts with Customers” with respect to revenue generated from the collaboration agreement. Prior to its termination, we had been required to pay to the IIA 5.38% of each payment made to us under such collaboration agreement with an ultimately liability of up to 600% of the grant received plus interest. As of September 30, 2025, we had paid royalties to the IIA in the amount of $96 thousand.
In addition to paying any royalties due, we must abide by other restrictions associated with receiving such grants under the Research Law that continue to apply following repayment to the IIA.
Recent Developments Potentially Affecting Our Business
Israel’s multi-front war with terrorist groups in neighboring countries, such as Hezbollah in Lebanon and Hamas in the Gaza Strip, and state actors such as Iran, and Israel’s responses thereto.
In October 2023, Israel was attacked by Hamas, a terrorist organization and entered a state of war. Since the commencement of these events, there have been continuous rocket strikes across Israel, including with Hezbollah in Lebanon, the Houthi movement which controls parts of Yemen, and with Iran. In response to ongoing Iranian aggression and support of proxy attacks against Israel, on June 12, 2025, Israel conducted a series of preemptive defensive air strikes in Iran targeting Iran’s nuclear program and military commanders. On June 21, 2025, U.S. President Donald Trump announced that the United States had conducted air strikes against three nuclear sites within Iran. On October 9, 2025, a ceasefire had been reached. Israel, Hamas, the United States and other countries in the region agreed to a framework for a ceasefire in Gaza between Israel and Hamas. However, there is no assurance that the ceasefire will be upheld. Military activity and hostilities may continue or escalate, including in Northern Israel, Lebanon, Iran or elsewhere in the region. Any renewed or expanded conflict involving Israel, Hamas, Hezbollah, Iran, or other militant groups or states could disrupt regional security and economic conditions and, depending on its scope and duration, could adversely affect our business and operations. The Company’s research personnel and some management personnel are located in Israel. However, other core activities, including clinical, regulatory and supply chain are outside of Israel.
Currently, such activities in Israel remain largely unaffected by the foregoing events. During the nine months ended September 30, 2025 and as of December 31, 2024, the impact of such events on the Company’s results of operations and financial condition was immaterial.
Financial Overview
From our inception through September 30, 2025, we have raised a total of $111.4 million from a combination of public and private equity offerings, IIA grants and the issuance of Ordinary Shares upon the exercise of options and warrants. Since inception, we have incurred significant losses. For the three months ended September 30, 2025 and 2024, our operating losses were $3.3 million and $3.0 million, respectively. For the nine months ended September 30, 2025 and 2024, our operating losses were $8.5 million and $7.2 million, respectively, and we expect to continue to incur significant expenses and losses for the foreseeable future.
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As of September 30, 2025, we had an accumulated deficit of $122.4 million. Our losses may fluctuate significantly from quarter to quarter and year to year, depending on the timing of our clinical trials, our expenditures on research and development activities and any third-party collaborations into which we may enter.
The Company is engaged in research and development activities, and it has not derived significant income from its activities and has incurred an accumulated deficit and negative cash flows from operating activities since inception. These factors raise substantial doubt as to the Company's ability to continue as a going concern. The unaudited condensed consolidated financial statements included herein have been prepared assuming that we will continue as a going concern and do not include adjustments that might result from the outcome of this uncertainty. See Part I, Item 1A-Risk Factors—Risks Related to Our Financial Position and Need for Additional Capital contained in our 2024 Annual Report.
As of September 30, 2025, we had cash and cash equivalents and restricted cash of $16.6 million, of which $8.0 million has been designated to fund our obligations under the 2025 Collaboration Agreement. Given our current cash position and plans, we believe that our existing cash resources will be sufficient to meet our projected operating requirements through the middle of the third quarter of 2026, which include the capital required to fund our ongoing operations, including manufacturing, research, development, and regulatory expenses related to the preparation of the EB613 phase 3 program in osteoporosis, ongoing N-Tab™ platform development and intellectual property expenses, completion of a Phase 1 PK study related to the Company’s next generation of EB613 and completion of SAD and MAD Phase 1 studies of oral OXM (GLP1/Glucagon tablet) in collaboration with OPKO. Our ability to commence the Phase 3 program of EB613 in osteoporosis will require additional funding, which may not be available on reasonable terms, or at all. Any delay or our inability to secure such funding will delay or prevent the commencement of this study.
In order to fund further operations, we will need to raise additional capital. We may raise these funds through a variety of means, including private or public equity offerings, debt financings and strategic collaborations. Additional financing may not be available when we need it or may not be available on terms that are favorable to us.
As of September 30, 2025, we had a total of 22 employees, of whom 20 are full-time employees, and all are based in Israel. In addition, we employ a number of specialized clinical, non-clinical, statistical, regulatory and development advisors based in the United States, the United Kingdom, Asia and Europe. Our operations are located in Jerusalem, Israel.
Revenue
To date, we have not generated any revenue from sales of our products, and we do not expect to receive any revenue from our product candidates unless and until we obtain regulatory approval and successfully commercialize our products.
Research and Development Expenses
Research and development expenses consist of costs incurred for the development of our N-Tab™ technology platform and our product candidates. We expense both internal and external research and development expenses to operations for the periods in which they are incurred. We mapped the majority of external research and development costs incurred for our product candidates and development programs.
Internal and certain general external research and development expenses support multiple product candidate research and development programs, include:
| • | employee-related expenses, including salaries, bonuses and share-based compensation expenses for employees and service providers in the research and development function; |
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| • | costs associated with our research and development platform used across programs, process development, manufacturing, consulting fees and preclinical development for earlier stage programs and new technologies; |
| • | expenses incurred in operating our laboratories including our small-scale manufacturing facility; and |
| • | depreciation of research and development equipment, allocated overhead, rent and facilities-related expenses. |
External research and development expenses for our main clinical development programs include:
| • | expenses incurred under agreements with CROs and investigative sites that conduct our clinical trials; |
| • | other costs associated with pre-clinical and clinical activities; |
| • | supply, development and manufacturing costs relating to clinical trial materials; and |
| • | certain consulting and advisory services related to the program; |
Research and development activities are the primary focus of our business. Product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development, primarily due to the increased size and duration of later-stage clinical trials. We expect that our research and development expenses will increase significantly in future periods as we advance our clinical candidates into later stages of clinical development and invest in additional preclinical candidates.
Our research and development expenses may vary substantially from period to period based on the timing of our research and development activities, including due to the timing of initiation of clinical trials and the enrollment of patients in clinical trials. Research and development expenses for the three and nine months ended September 30, 2025 were primarily for the development of EB613 and our collaboration with OPKO related to OXM and for the three and nine months ended September 30, 2024 were primarily for the development of EB613. The successful development of our product candidates is highly uncertain. At this time, we cannot reasonably estimate the nature, timing and estimated costs of the efforts that will be necessary to complete the development of, or the period, if any, in which material net cash inflows may commence from any of our product candidates. This is due to numerous risks and uncertainties associated with developing drugs, including:
| • | the uncertainty of the scope, rate of progress, results and cost of our clinical trials, nonclinical testing and other related activities; |
| • | the cost of manufacturing clinical supplies and establishing commercial supplies of our product candidates and any products that we may develop; |
| • | the number and characteristics of product candidates that we pursue; |
| • | the cost, timing and outcomes of regulatory approvals; |
| • | the cost and timing of establishing any sales, marketing, and distribution capabilities; and |
| • | the terms and timing of any collaborative, licensing and other arrangements that we may establish, including any milestone and royalty payments thereunder. |
A change in the outcome of any of these variables with respect to the development of EB613, OXM or any other product candidate that we may develop could significantly change the costs and timing associated with the development of any such product candidate. For example, if the FDA or other regulatory authority were to require us to conduct preclinical or clinical studies beyond those that we currently anticipate will be required for the completion of clinical development, if we experience significant delays in enrollment in any clinical trials or if we encounter difficulties in manufacturing our clinical supplies, then we could be required to expend significant additional financial resources and time on the completion of the clinical development.
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Our research and development expenses for the three and nine months ended September 30, 2025 and September 30, 2024 are summarized as follows:
Nine Months Ended September 30, (unaudited) | Three Months Ended September 30, (unaudited) | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (In thousands) | (In thousands) | ||||||||||||||
External Expenses related to EB613 | $ | 1,544 | $ | 934 | $ | 572 | $ | 782 | ||||||||
Internal and External expenses related to OXM collaboration with OPKO | 190 | - | 70 | - | ||||||||||||
Internal and External expenses related to other development program: | ||||||||||||||||
Payroll and related expenses | 1,184 | 1,107 | 418 | 372 | ||||||||||||
Share-based compensation | 799 | 643 | 329 | 229 | ||||||||||||
Rent and related expenses | 344 | 244 | 122 | 62 | ||||||||||||
Other development expenses | 255 | 370 | 132 | 32 | ||||||||||||
Research and development expenses, net | $ | 4,286 | $ | 3,298 | $ | 1,643 | $ | 1,477 | ||||||||
General and Administrative Expenses
General and administrative expenses consist principally of salaries and related expenses, share-based compensation and related costs for directors and personnel in executive and finance functions. Other general and administrative expenses include D&O insurance and other insurance, communication expenses, professional fees for legal and accounting services, costs associated with maintaining and prosecuting our intellectual property portfolio and business development expenses.
Financial Income, Net
Financial income, net is composed primarily of interest income from bank deposits and exchange rate differences of certain currencies against our functional currency, which is the U.S. Dollar.
Taxes on Income
We have not generated taxable income since our inception, and, as of September 30, 2025, we had carryforward tax losses of $89.8 million.
We anticipate that we will be able to carry forward these tax losses indefinitely to future tax years. Accordingly, we do not expect to pay taxes in Israel until we have taxable income after the full utilization of our carryforward tax losses. We provided a full valuation allowance with respect to the deferred tax assets related to these carryforward losses.
The Company’s subsidiary, Entera Bio, Inc., is taxed separately under U.S. tax laws. As of September 30, 2025, Entera Bio Inc. had tax loss carryforwards of $174 thousand.
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Results of Operations
Comparison of Three Months Ended September 30, 2025 and 2024
| Three Months Ended September 30, | Increase (Decrease) | ||||||||||||||
| 2025 | 2024 | $ | % | ||||||||||||
| (In thousands, except for percentage information) | |||||||||||||||
Revenues | $ | - | $ | 42 | $ | (42 | ) | (100 | )% | |||||||
Cost of Revenues | $ | - | $ | 42 | $ | (42 | ) | (100 | )% | |||||||
Gross Profit | $ | - | $ | - | $ | - | - | |||||||||
Operating expenses: | ||||||||||||||||
Research and development expenses | $ | 1,643 | $ | 1,477 | $ | 166 | 11 | % | ||||||||
General and administrative expenses | $ | 1,613 | $ | 1,544 | $ | 69 | 4 | % | ||||||||
Operating loss | $ | 3,256 | $ | 3,021 | $ | 235 | 8 | % | ||||||||
Financial income, net | $ | (56 | ) | $ | - | $ | (56 | ) | 100 | % | ||||||
Net loss | $ | 3,200 | $ | 3,021 | $ | 179 | 6 | % | ||||||||
Revenues
Revenues for the three months ended September 30, 2024 were $42 thousand, which were attributable to research services we provided pursuant to a material transfer and research project agreement entered into in April 2024 (the “research services agreement”). The Company completed the first stage of its obligations under the research services agreement in the first quarter of 2025. As a result, we did not recognize any revenue for the three months ended September 30, 2025.
Cost of Revenues
Cost of revenues for the three months ended September 30, 2025 was zero, as compared to $42 thousand for the three months ended September 30, 2024, which were attributable to research services we provided pursuant to the research services agreement. The Company completed the first stage of its obligations under the research services agreement in the first quarter of 2025, resulting in no revenue recognized for the three months ended September 30, 2025.
Research and Development Expenses
Research and development expenses for the three months ended September 30, 2025 were $1.6 million, as compared to $1.5 million for the three months ended September 30, 2024. The increase of $0.1 million was attributed to an increase of $0.2 million in consulting fees, including regulatory expenses in connection with filing of a type A meeting and ongoing optimization processes related to the preparation of the EB613 phase 3 program, an increase of $0.1 million in connection with our internal programs and collaboration programs and an increase of $0.1 million in compensation, which increase was partially offset by a decrease of $0.3 million in materials and productions related to the preparation of the EB613 phase 3 study.
General and Administrative Expenses
General and administrative expenses for the three months ended September 30, 2025 were $1.6 million, as compared to $1.5 million for the three months ended September 30, 2024. The increase of $0.1 million was mainly attributable to an increase of $0.2 million in consultant fees and $0.2 million in compensation, which increase was partially offset by a decrease of $0.3 million in legal fees, mainly related to IP costs.
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Financial Income, Net
Financial income, net for the three months ended September 30, 2025 was $56 thousand as compared to zero for the three months ended September 30, 2024. Our financial income mainly included income from bank deposits and exchange rate differences of certain currencies against our functional currency, which is the U.S. Dollar.
Comparison of Nine Months Ended September 30, 2025 and 2024
| Nine Months Ended September 30, | Increase (Decrease) | ||||||||||||||
| 2025 | 2024 | $ | % | ||||||||||||
| (In thousands, except for percentage information) | |||||||||||||||
Revenues | $ | 42 | $ | 99 | $ | (57 | ) | (58 | )% | |||||||
Cost of Revenues | $ | 42 | $ | 90 | $ | (48 | ) | (53 | )% | |||||||
Gross Profit | $ | - | $ | 9 | $ | (9 | ) | (100 | )% | |||||||
Operating expenses: | ||||||||||||||||
Research and development expenses | $ | 4,286 | $ | 3,298 | $ | 988 | 30 | % | ||||||||
General and administrative expenses | $ | 4,201 | $ | 3,959 | $ | 242 | 6 | % | ||||||||
Operating loss | $ | 8,487 | $ | 7,248 | $ | 1,239 | 17 | % | ||||||||
Financial income, net | $ | (64 | ) | $ | (65 | ) | $ | 1 | (2 | )% | ||||||
Net loss | $ | 8,423 | $ | 7,183 | $ | 1,249 | 17 | % | ||||||||
Revenues
Revenues for the nine months ended September 30, 2025 and 2024 were $42 thousand and $99 thousand, respectively, which were attributable to research services we provided pursuant to the research services agreement. The Company completed the first stage of its obligations under the research services agreement in the first quarter of 2025.
Cost of Revenues
Cost of revenues for the nine months ended September 30, 2025 and 2024 was $42 thousand and $90 thousand, respectively, which were attributable to research services we provided pursuant to the research services agreement. The Company completed the first stage of its obligations under the research services agreement in the first quarter of 2025.
Research and Development Expenses
Research and development expenses for the nine months ended September 30, 2025 were $4.3 million as compared to $3.3 million for the nine months ended September 30, 2024. The increase of $1.0 million was primarily due to an increase of $0.7 million in other consulting fees, including regulatory expenses in connection with filing of a type A meeting and ongoing optimization processes related to the preparation of the EB613 phase 3 program, an increase of $0.3 million in connection with our internal programs and collaboration programs, an increase of $0.2 million in compensation and an increase of $0.1 million in other expenses. This increase was partially offset by a decrease of $0.3 million in materials and productions related to the preparation of the EB613 phase 3 study.
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General and Administrative Expenses
General and administrative expenses for the nine months ended September 30, 2025 were $4.2 million as compared to $4.0 million for the nine months ended September 30, 2024. The increase was primarily due to an increase of $0.2 million of other consultants and an increase of $0.2 million in compensation. This increase was partially offset by a decrease of $0.1 million in legal fees, mainly related to IP costs, and a decrease of $0.1 million in other expenses.
Financial Income, Net
Financial income, net for the nine months ended September 30, 2025 and 2024 was $64 thousand and $65 thousand, respectively. Our financial income was composed mainly of interest income from bank deposits and exchange rate differences of certain currencies against our functional currency, which is the U.S. Dollar.
Liquidity and Capital Resources
Since inception, we have incurred significant losses from operations, negative cash flows from operating activities and lack of liquidity. For the three months ended September 30, 2025 and 2024, our operating losses were $3.3 million and $3.0 million, respectively. For the nine months ended September 30, 2025 and 2024, our operating losses were $8.5 million and $7.2 million, respectively. As of September 30, 2025, we had an accumulated deficit of $122.4 million. We expect to continue to incur significant expenses and losses for the next several years as we advance our product candidates through development and provide administrative support for our operations. These factors raise substantial doubt about our ability to continue as a going concern. Given our current plans, we believe that our existing cash resources will be sufficient to meet our projected operating requirements through the middle of the third quarter of 2026 without additional funding, excluding the initiation of Phase 3 program of EB613 in osteoporosis.
From our inception through September 30, 2025, we have raised a total of $111.4 million, including $36.3 million through at-the-market-offering (“ATM”) programs, an aggregate of $28.9 million in private placements since our IPO, $11.2 million in our IPO in 2018 and $35.0 million in aggregate funding from a combination of IIA grants, exercise of options and warrants and private placements of Ordinary Shares, preferred shares and debt prior to our IPO.
As of September 30, 2025, we had cash and cash equivalents and restricted cash of $16.6 million, of which $8.0 million has been designated to fund our obligations under the 2025 Collaboration Agreement. Our primary uses of cash have been to fund research and clinical development, general and administrative expenses and working capital requirements, and we expect these will continue to be our primary uses of cash.
Equity Offerings
On September 2, 2022, we entered into a Sales Agreement with Leerink Partners LLC (f/k/a SVB Securities LLC), as sales agent, to implement an ATM program (the “Leerink ATM Program”) under which we were originally able to sell up to 5,000,000 Ordinary Shares under our currently effective Registration Statement on Form S-3 and a related prospectus supplement forming a part thereof. The sales agent is entitled to a fixed commission of 3% of the aggregate gross proceeds as well as and reimbursement of expenses. In January 2025, we sold an additional 2,700,000 Ordinary Shares at $2.29 per share to Point 72 Asset Management, L.P. for aggregate proceeds of $6.0 million, net of issuance costs. As of September 30, 2025, we had sold 4,940,156 shares under the Leerink ATM Program for aggregate proceeds of $9.8 million, net of issuance costs. In order to refresh the Leerink ATM program, in January 2025, we filed a supplement to the prospectus supplement, which provides us the ability, but not the obligation, to sell up to an additional 30,000,000 Ordinary Shares under the Leerink ATM Program.
In connection with our entering into the 2025 Collaboration Agreement with OPKO, we issued to OPKO an aggregate of 3,685,226 Ordinary Shares for a purchase price of $8.0 million, representing a purchase price per share equal to approximately $2.17, which was the volume weighted average price per share for the 30 trading days immediately preceding the date of such agreement. The proceeds received are not reflected in our cash balance as of September 30, 2025, as we have escrowed such proceeds and agreed to use them solely to fund our development cost obligations under the 2025 Collaboration Agreement.
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Funding Requirements
Given our current plans, we believe that our existing cash resources will be sufficient to support the Company’s operations through the middle of the third quarter of 2026. This assumes the use of the Company’s capital to fund our ongoing operations, including manufacturing, research, development, and regulatory expenses related to the preparation of the EB613 phase 3 program in osteoporosis, ongoing N-Tab™ platform development and intellectual property expenses, completion of a Phase 1 PK study related to the Company’s next generation of EB613 and completion of SAD and MAD Phase 1 studies of oral OXM (GLP1/Glucagon tablet) in collaboration with OPKO. Our ability to commence the Phase 3 program of EB613 in osteoporosis will require additional funding, which may not be available on reasonable terms, or at all. Any delay or our inability to secure such funding will delay or prevent the commencement of these studies. Our expectations are based on management’s current assumptions, clinical development plans and regulatory submission timelines, which may prove to be wrong, and we could spend our available financial resources much faster than we currently expect.
We have based these estimates on assumptions that may prove to be wrong, and we may use our available capital resources sooner than we currently expect. Because of the numerous risks and uncertainties associated with the development of our product candidates, and the extent to which we may enter into collaborations with third parties for development of these or other product candidates, we are unable to estimate the amounts of increased capital outlays and operating expenses associated with completing the development of our current and future product candidates. Our future capital requirements will depend on many factors, including:
| • | the costs, timing and outcome of clinical trials for, and regulatory review of, EB613, EB612 and any other product candidates we may develop; |
| • | the costs of development activities for any other product candidates we may pursue; |
| • | the costs of preparing, filing and prosecuting patent applications, maintaining and enforcing our intellectual property rights and defending intellectual property-related claims; and |
| • | our ability to establish collaborations on favorable terms, if at all. |
We continuously evaluate various financing alternatives in the public or private equity markets or through license of our N-Tab™ technology to additional external parties through partnerships or research collaborations as we will need to finance future research and development activities, general and administrative expenses and working capital through fund raising. However, there is no certainty about our ability to obtain such funding.
Other than the Leerink ATM Program, we do not have any committed external sources of funds. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our then-existing shareholders will be diluted, and the terms of these securities may include liquidation or other preferences that may adversely affect our existing shareholders’ rights as shareholders. Debt financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends and may include requirements to hold minimum levels of funding. If we raise additional funds through collaborations, strategic alliances or licensing arrangements with third parties, we may have to relinquish valuable rights to our product candidates, future revenue streams or research programs or grant licenses on terms that may not be favorable to us. If we are unable to raise additional funds through equity or debt financings or collaborations, when needed, we may be required to delay, limit, reduce or terminate our product development or future commercialization efforts.
The Company is engaged in research and development activities, and it has not derived significant income from its activities and has incurred an accumulated deficit and negative cash flows from operating activities since inception. As of the date of this Quarterly Report, we believe that our existing cash resources will be sufficient to support the Company’s operations under its current plans through the middle of the third quarter of 2026. These factors raise substantial doubt as to the Company's ability to continue as a going concern. The unaudited condensed consolidated financial statements contained in this Quarterly Report have been prepared on a going concern basis and do not include any adjustments that may be necessary should we be unable to continue as a going concern. If we are unable to finance our operations, our business would be in jeopardy, and we might not be able to continue operations and might have to liquidate our assets. In that case, investors might receive less than the value at which those assets are carried on our financial statements, and it is likely that investors would lose all or a part of their investment.
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Cash Flows
Nine Months Ended September 30, 2025 compared to Nine Months Ended September 30, 2024
The following table sets forth the primary sources and uses of cash for each of the periods set forth below:
| Nine Months Ended September 30, (unaudited) | |||||||
| 2025 | 2024 | ||||||
| (In thousands) | |||||||
Net Cash used in operating activities | $ | (5,537 | ) | $ | (5,351 | ) | ||
Net Cash used in investing activities | $ | (80 | ) | $ | - | |||
Net Cash provided by financing activities | $ | 13,536 | $ | 1,259 | ||||
Effect of Exchange Rate change on cash and cash equivalents | $ | 29 | - | |||||
Net increase (decrease) in cash and cash equivalents | $ | 7,919 | $ | (4,092 | ) | |||
Net Cash Used in Operating Activities
Net cash used in operating activities for the nine months ended September 30, 2025 was $5.5 million, consisting primarily of our operating loss of $8.5 million, which was partially offset by approximately $2.1 million of share-based compensation and depreciation expenses and a decrease of approximately $0.9 million in our net operating assets and liabilities.
Net cash used in operating activities for the nine months ended September 30, 2024 was $5.4 million, consisting primarily of our operating loss of $7.2 million and an increase of $0.2 million in our net operating assets and liabilities, which was partially offset by approximately $2.0 million of share-based compensation and depreciation expenses.
The change in cash used in operating activities for the nine months ended September 30, 2025 compared to the same period in 2024 was mainly attributed to an increase of $1.3 million in our operating loss, which was partially offset by a decrease of $1.1 million in our net operating assets and liabilities and an increase of $0.1 million of share-based compensation and depreciation expense.
Net Cash Used in Investing Activities
Net cash used in investing activities for the nine months ended September 30, 2025 consisted primarily of the purchase of property and equipment.
There was no net cash used in or provided by investing activities for the nine months ended September 30, 2024.
Net Cash Provided by Financing Activities
Net cash provided by financing activities for the nine months ended September 30, 2025 consisted of the net proceeds of $6.0 million from the issuance of Ordinary Shares under the Leerink ATM Program, $0.4 million from the issuance of Ordinary Shares upon the exercise of warrants and $7.1 million from issuance of Ordinary Shares under the 2025 Collaboration Agreement.
Net cash provided by financing activities for the nine months ended September 30, 2024 consisted of the net proceeds of $0.6 million from the issuance of Ordinary Shares under the Leerink ATM Program and $0.7 million from the issuance of Ordinary Shares upon the exercise of options and warrants.
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Contractual Obligations
There have not been any material changes in our assessment of material contractual obligations and commitments as set forth in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2024 Annual Report.
Critical Accounting Policies and Estimates
See Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies” and our consolidated financial statements and related notes included in the 2024 Annual Report for accounting policies and related estimates we believe are the most critical to understanding our consolidated financial statements, financial condition and results of operations and which require complex management judgment and assumptions, or involve uncertainties. The preparation of consolidated financial statements also requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. There have been no changes to our critical accounting policies or their application since the date of the 2024 Annual Report.
Recently Issued Accounting Pronouncements
Certain recently issued accounting pronouncements are discussed in Note 2 to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not required for smaller reporting companies.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of September 30, 2025, which we refer to as the Evaluation Date. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the Evaluation Date, our disclosure controls and procedures were effective.
Changes in Internal Control over Financial Reporting
There have been no changes in our internal control over financial reporting that occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II – OTHER INFORMATION.
ITEM 1. LEGAL PROCEEDINGS
We are not currently a party to any material legal proceedings.
ITEM 1A. RISK FACTORS
Except as set forth below in this Item 1A, there have been no material changes with respect to the risk factors disclosed in Part I, Item 1A. of our 2024 Annual Report.
Israel’s multi-front war with terrorist groups in neighboring countries, such as Hezbollah in Lebanon and Hamas in the Gaza Strip, and state actors such as Iran, and Israel’s responses thereto, may have an effect on our business.
Our research personnel and some management personnel are located in Israel, however other core activities including clinical, regulatory and supply chain are outside of Israel. Accordingly, political, economic and military conditions in the Middle East may affect our business directly.
In October 2023, Israel was attacked by Hamas, a terrorist organization and entered a state of war. Since the commencement of these events, there have been continuous rocket strikes across Israel, including with Hezbollah in Lebanon, the Houthi movement which controls parts of Yemen, and with Iran. In response to ongoing Iranian aggression and support of proxy attacks against Israel, on June 12, 2025, Israel conducted a series of preemptive defensive air strikes in Iran targeting Iran’s nuclear program and military commanders. On June 21, 2025, U.S. President Donald Trump announced that the United States had conducted air strikes against three nuclear sites within Iran. On October 9, 2025, Israel, Hamas, the United States and other countries in the region agreed to a framework for a ceasefire in Gaza between Israel and Hamas; however, there is no assurance that the ceasefire will be upheld. Military activity and hostilities may continue or escalate, including in Northern Israel, Lebanon, Iran or elsewhere in the region. Any renewed or expanded conflict involving Israel, Hamas, Hezbollah, Iran, or other militant groups or states could disrupt regional security and economic conditions and, depending on its scope and duration, could adversely affect our business and operations. The Company’s research personnel and some management personnel are located in Israel; however other core activities including clinical, regulatory and supply chain are outside of Israel.
While we have a few employees who are in active military service, the war, Hezbollah’s attacks on Northern Israel, and the direct offensives from Iran and its proxies have not, to date, materially impacted our business or operations. Furthermore, we do not expect any delays to any of our programs as a result of such conflicts. While research and some management are located in Israel; other core activities including clinical, regulatory and our supply chain are not. However, we cannot currently predict how such conflicts will ultimately affect our business and operations or Israel’s economy in general.
Currently, such activities in Israel remain largely unaffected by the foregoing events. During the nine months ended September 30, 2025 and as of December 31, 2024, the impact of such events on the Company’s results of operations and financial condition was immaterial.
Additionally, political uprisings, social unrest and violence in various other countries in the Middle East, including Israel’s neighboring countries Syria, Lebanon, Egypt and Jordan, are affecting the political stability of those countries. This instability may lead to deterioration of the political relationships that exist between Israel and certain countries and have raised concerns regarding security in the region and the potential for armed conflict Iran is also believed to have a strong influence over various proxy militias across the Middle East, and among the Hamas and Hezbollah, in addition to its readiness to engage in conflict with Israel directly. These situations may potentially escalate in the future into more violent events which may affect Israel and us.
Any hostilities involving Israel or the interruption or curtailment of trade between Israel and its present trading partners could have a material adverse effect on our business. Although such hostilities did not have a material adverse impact on our business in the past, we cannot guarantee that hostilities will not be renewed and have such an effect in the future. These or other Israeli political or economic factors could harm our operations and product development. Any hostilities involving Israel or the interruption or curtailment of trade between Israel and its present trading partners could adversely affect our operations. In light of the intensity of the ongoing Israel-Hamas War, the escalation of Hezbollah's and Iran’s attack of Israeli civilian and military sites, in September 2024, the international rating agency Moody's downgraded Israel's credit rating from A2 to Baa1, reflecting heightened geopolitical risks. This lowered credit rating, as well as the ongoing war and conflicts described above, could make it more difficult for us to raise capital, if needed, and negatively influence the market price of our Ordinary Shares. We could experience disruptions if acts associated with such conflicts result in any serious damage to our facilities.
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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
On April 28, 2025, our board of directors granted 26,316 restricted stock units (“RSUs”) under the Company’s existing equity inventive plan to an entity controlled by an executive officer of the Company for services rendered by the executive officer in lieu of an annual cash bonus. The RSUs vest in four equal quarterly installments over a one-year period that commenced on April 28, 2025. This grant was subject to shareholder approval, which was obtained at a meeting of the Company’s shareholders held on July 16, 2025.
The offer and sale of the RSUs were not registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from registration requirements. The Company’s offer and sale of the RSUs were made in reliance upon the exemption from the registration requirements of the Securities Act pursuant to Section 4(a)(2) thereof and Regulation S promulgated thereunder.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
During the quarter ended September 30, 2025, none of our officers or directors adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act or any “non-Rule 10b5-1 trading arrangement”, as defined in Item 408 of Regulation S-K.
ITEM 6. EXHIBITS
Exhibit No. | Description of Exhibits | |
31.1 | Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1** | Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2** | Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | XBRL Instance Document. | |
101.SCH | XBRL Taxonomy Extension Schema Document. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
** Furnished herewith.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
ENTERA BIO LTD. | |
Date: November 14, 2025 | /s/ Miranda Toledano |
Miranda Toledano Chief Executive Officer | |
(Principal Executive Officer) | |
Date: November 14, 2025 | /s/ Dana Yaacov-Garbeli |
Dana Yaacov-Garbeli Chief Financial Officer | |
(Principal Financial and Accounting Officer) |
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FAQ
What were ENTX’s Q3 2025 results?
For Q3 2025, net loss was $3.2M . For the nine months ended September 30, 2025, revenue was $42K and net loss was $8.4M .
How much cash does ENTX have?
Cash, cash equivalents and restricted cash totaled $16.7M at September 30, 2025, including $8.0M held in escrow for the OPKO collaboration.
What is Entera Bio’s cash runway?
Management estimates existing cash supports operations through the middle of Q3 2026; however, Phase 3 for EB613 will require additional funding.
What progress was made with the FDA on EB613?
The FDA agreed that an EB613 NDA could be supported by a single 24‑month Phase 3 using total hip BMD as the primary endpoint and vertebral fractures as key secondary.
What financing actions occurred in 2025?
ENTX raised net $6.1M via ATM (2,731,574 shares at ~$2.29) and issued 3,685,226 shares to OPKO for $8.0M placed in escrow.
How many shares are outstanding?
Shares outstanding were 45,664,506 as of September 30, 2025, and 45,857,242 as of November 10, 2025.
Entera Bio Ltd
NASDAQ:ENTX
ENTX Rankings
ENTX Latest News
ENTX Latest SEC Filings
Aug 8, 2025
[8-K] Entera Bio Ltd. Reports Material Event
Aug 8, 2025
[10-Q] Entera Bio Ltd. Quarterly Earnings Report
Jul 28, 2025
[8-K] Entera Bio Ltd. Reports Material Event
ENTX Stock Data
125.12M
34.56M
24.31%
22.36%
0.08%
Biotechnology
Biological Products, (no Disgnostic Substances)
Israel
JERUSALEM