BioAtla, Inc. (NASDAQ: BCAB), a clinical-stage biopharmaceutical company developing conditionally active biologics (CABs) for solid tumor treatments, reported a net loss of $69.8 million for the fiscal year ended December 31, 2024.

This represents a significant improvement from the $123.5 million net loss reported in 2023, primarily driven by reduced research and development expenses as the company advances its lead programs through clinical trials.

Financial Highlights

Revenue: $11.0 million from licensing agreement with Context Therapeutics for BA3362, a Nectin-4 x CD3 T-cell engaging bispecific antibody
R&D Expenses: $63.1 million, down from $103.7 million in 2023
General and Administrative Expenses: $21.8 million, down from $26.0 million in 2023
Cash Position: $49.0 million as of December 31, 2024
Operational Runway: Into the first half of 2026, according to company projections.

The company’s reduced R&D expenses of approximately $40.6 million were primarily attributed to a $16.9 million decrease in development costs for pre-clinical programs, a $13.5 million decrease in development costs for clinical stage programs due to completing Phase 2 enrollment for ongoing ADC trials, and a $9.6 million decrease in manufacturing costs for evalstotug.

Meanwhile, the decrease in G&A expenses of approximately $4.1 million was driven by a $3.4 million reduction in stock-based compensation and lower insurance premiums.

Clinical Pipeline Progress

BioAtla continues to advance its proprietary CAB technology platform, which enables antibodies to selectively target tumor cells by exploiting the acidic pH of the tumor microenvironment while remaining inactive in normal tissues.

“Our CAB technology has demonstrated the potential to significantly improve the benefit-risk ratio for patients by delivering potent therapeutic agents precisely to cancer cells while minimizing on-target, off-tumor toxicity,” said Jay M. Short, Ph.D., Chairman and CEO of BioAtla.

Key clinical developments include:

Mecbotamab vedotin (BA3011): Phase 2 studies showed promising long-term survival in KRAS-mutated non-small cell lung cancer (NSCLC) patients, both as monotherapy and in combination with nivolumab. FDA clearance received for a potentially registration-enabling Phase 2/3 trial in NSCLC. The company is also seeing encouraging efficacy in AXL-positive undifferentiated pleomorphic sarcoma (UPS) patients.
Ozuriftamab vedotin (BA3021): Demonstrated encouraging overall response rates in squamous cell carcinoma of the head and neck (SCCHN), earning FDA Fast Track designation in July 2024. The company has determined that 1.8 mg/kg delivered every other week satisfies dose optimization requirements, which will be confirmed prior to initiation of a Phase 3 study.
Evalstotug (BA3071): Completed a dose-escalation trial as monotherapy and in combination with anti-PD-1 antibody, reaching the planned maximum dose of 1000 mg without determining a maximum tolerated dose. A Phase 2 study is ongoing at doses of 350mg or 700mg in combination with pembrolizumab for dose optimization, showing promising efficacy across several indications with acceptable tolerability.
BA3182 (CAB-EpCAM x CAB-CD3): Phase 1 dose escalation study in advanced adenocarcinoma showing early signs of efficacy, including tumor reduction in a colorectal cancer patient with stable disease for over one year. This bispecific candidate demonstrated in its IND-enabling studies a more than 100-fold improvement in therapeutic window compared to a non-CAB anti-EpCAM bispecific antibody.

Business Development

In September 2024, BioAtla entered into a licensing agreement with Context Therapeutics for BA3362, a Nectin-4 x CD3 T-cell engaging bispecific antibody. The deal provides up to $133.5 million in potential payments, including upfront cash, development and commercial milestones, plus tiered mid-single digit to low double-digit royalties on future net sales.

In December 2024, the company completed a registered direct offering raising approximately $9.2 million through the sale of 9,679,158 shares of common stock (priced at $0.9520 per share) with accompanying warrants to purchase up to 9,679,158 shares of common stock at an exercise price of $1.19 per share.

The company also received FDA clearance for its IND for BA3361, a CAB-Nectin-4-ADC, adding to its growing pipeline of novel cancer therapeutics.

Workforce Update

In March 2025, BioAtla announced a reduction in its workforce by approximately 30%, which is expected to result in cash expenditures of between $0.5 and $0.6 million for employee severance and related benefit costs, substantially all of which is expected to be paid in the second quarter of 2025.

Outlook and Going Concern

The company noted that its current cash position raises substantial doubt about its ability to continue as a going concern for the next 12 months. Management believes that data from ongoing clinical trials will enable additional capital raising to address this concern.

“We expect our research and development expenses to decrease in the near term as we complete enrollment for certain clinical trials and focus development on selected high-potential indications,” said Richard Waldron, Chief Financial Officer. “However, we recognize the need for additional funding to support our clinical development plans.”

The company is actively exploring partnering opportunities across its portfolio, including for its clinical-stage programs ozuriftamab vedotin and evalstotug, to maximize their market potential and expand the commercial potential of its CAB technology platform.

Opinion

BioAtla’s significant reduction in net loss from 2023 to 2024 demonstrates improved operational efficiency as the company prioritizes its most promising programs. The licensing deal with Context Therapeutics validates the company’s platform technology and provides both immediate and potential future revenue streams.

However, the going concern warning highlights the challenging financial position many clinical-stage biotech companies face in today’s market.

While BioAtla has promising clinical data across multiple programs, particularly in mecbotamab vedotin for KRAS-mutated NSCLC and ozuriftamab vedotin for SCCHN, the company will need to carefully manage its resources and potentially secure additional financing or partnerships to advance these candidates to later-stage trials.

The recent workforce reduction reflects a necessary but difficult step toward extending the company’s cash runway. This restructuring, combined with the focus on prioritized clinical programs, demonstrates management’s commitment to maximizing shareholder value while navigating financial constraints.

The company’s CAB technology platform represents a potentially significant advancement in antibody-based cancer therapeutics by addressing the long-standing challenge of on-target, off-tumor toxicity. If BioAtla can successfully go through its financial challenges, this platform could yield multiple valuable cancer therapies targeting previously difficult-to-drug cancer antigens.

Investors should closely monitor upcoming clinical readouts, particularly from the mecbotamab vedotin and ozuriftamab vedotin programs, as positive data could significantly strengthen BioAtla’s position for either additional financing or strategic partnerships.

The FDA Fast Track designation for ozuriftamab vedotin in SCCHN is particularly noteworthy, as it could accelerate the development timeline and potentially lead to earlier regulatory approval.

News Source: SEC.