Portage Biotech Announces FY 2024 Financial Results and Business Update

Portage Biotech Inc., a clinical-stage immuno-oncology firm with a focus on developing multi-targeted therapies for cancer treatment, has released its financial results for the fiscal year ending March 31, 2024. The company, listed on NASDAQ under the ticker PRTG, is actively evaluating strategic options amidst financial pressures, which have led to the cessation of its iNKT clinical trial and a halt in patient enrollment for its ADPORT-601 clinical trial.

Chief Executive Officer and Chairman of Portage, Dr. Ian Walters, noted that the company is considering several strategic actions. These include partnering with other entities for its assets, selling the company, merging, restructuring, winding down operations, or pursuing additional financing.

Financially, Portage recorded a net loss of approximately $75.4 million for the fiscal year 2024, an improvement from the $104.7 million loss in the previous fiscal year. This reduction in net loss by $29.3 million was mainly due to fewer non-cash losses from impairments of intangible assets, goodwill, and certain investments. The fiscal year's net non-cash expenses totaled around $60.6 million.

Operating expenses for the year amounted to $18.2 million, up from $16.6 million in the previous year. This increase was driven primarily by higher costs associated with the company's clinical development programs, including the halted iNKT and the paused ADPORT-601 trials. Research and development (R&D) expenses rose by $3.8 million, a 44% increase from $8.7 million to $12.5 million, primarily due to clinical trial expenses, especially those related to contract research organizations (CROs).

R&D costs saw a significant rise in clinical trial expenditures, which surged from $2.7 million in fiscal 2023 to $5.2 million in fiscal 2024. Manufacturing-related expenses also doubled, increasing from $0.8 million to $1.8 million. Payroll-related costs saw a slight reduction from $1.9 million to $1.6 million, as salary increases were counterbalanced by the absence of annual bonuses. Additionally, non-cash share-based compensation expenses in R&D dropped from $2.2 million to $1.4 million due to the vesting of previously granted options and lower grant date fair value of recent options.

General and administrative (G&A) expenses decreased by $2.2 million, from $7.9 million in fiscal 2023 to $5.7 million in fiscal 2024. This reduction was largely due to a decrease in professional fees by $0.7 million, from $3.0 million to $2.3 million, mainly due to reduced legal fees related to acquisitions and regulatory filings. Non-cash share-based compensation in G&A also decreased by $0.8 million. Insurance expenses saw a decline by $0.5 million due to lower directors and officers (D&O) insurance premiums. Directors' fees and payroll-related expenses also saw slight reductions.

Portage's other pre-tax income and expenses were largely non-cash, totaling $67.7 million in net expenses for fiscal 2024, down from $105.9 million in fiscal 2023. These expenses were significantly impacted by impairment losses, including a $57.9 million write-off for iOx and a $23.6 million write-off for Tarus. The impairment of the company's investment in Stimunity and the related convertible note also added to these losses.

The company did, however, recognize some gains, such as an $11.3 million non-cash gain from the decreased fair value of deferred purchase price obligations and a $6.9 million non-cash gain from changes in the fair value of certain warrants. Additionally, a $0.7 million gain was realized from the sale of Intensity shares.

As of March 31, 2024, Portage reported having $5.0 million in cash and equivalents, with total current liabilities amounting to approximately $2.9 million.

Portage Biotech continues to navigate its financial and strategic challenges, aiming to enhance its portfolio and extend the survival and improve the lives of cancer patients. The company's ongoing strategic review underscores its commitment to finding viable paths forward amidst a challenging operational landscape.