Palisade Bio, Inc. (PALI) stock plummeted 7.49% in the pre-market trading session at the price of $2.47 despite no fundamental reason. The last published news was its financial results for the second quarter of 2021. PALI is a late‐stage biopharmaceutical company that produces therapies to treat patients with acute and chronic gastrointestinal diseases.  

PALI Second Quarter 2021 Financial Results 

On 24th August 2021, PALI published its financial results for the second quarter ended 30th June 2021, and presented a business update.  

Financial Summary 

For the three months ended on 30th June 2021, research and development expenses decreased from $650,000 to $314,000. The drop in R&D expenses resulted from higher trailing registration in the previous quarter and lower personnel-related costs and stock-based payments in the current quarter. For the quarter ended 30th June 2021, general and administrative expenses were raised by $2.4 million from $1.2 million in the same period of 2020.  

In-process research and development were $30.1 million for the quarter ended 30th June 2021 compared to $0 in the same period of last year. It indicates the allocation of the merger price to in-process research and development (R&D) projects without alternative future use. As of 30th June 2021, cash and cash equivalents were approximately $12.7 million. PALI reported outstanding debt of almost $1.1 million during the second quarter of 2021.  

Management Comments 

Chief executive officer of PALI, Tom Hallam, remarked that the recently published Phase-II data with Newsoara displaying LB1148 produced an accelerated return to bowel function for GI treatments. Up to date trials in both animals and humans reveal a constant statement that the drug is reliable, safe, and effective in expediting the return of bowel function.

PALI is searching for pathways to administrative approval for LB1148 because of its positive future clinical results. They anticipate building a pipeline of therapeutics based on their recently published license deal with the Regents of the University of California. They are now planning their future strategic activities and looking forward to reporting additional updates, he added.  

PALI Published $5.2M Investment 

On 20th August 2021, PALI published a private investment deal worth $5.2 million from the Yuma Regional Medical Center. The investment will use to improve the clinical advancement of oral liquid drug candidate, LB1148. As per the agreement, YRMC bought approximately 1,509,896 common shares with a purchase price of $3.45 per share. Additionally, YRMC received a 5-year warrant to buy an additional 377,474 unregistered common shares.