Traws Pharma Inc. (NASDAQ: TRAW) secured up to $60 million in a private financing deal to fund operations into 2027, even as it reported a $7.1 million net loss for the first quarter of 2026.
"The recently announced private financing of up to $60 million in gross proceeds provides us with a clear runway into Q1 2027 and supports our ability to execute on our key programs," Iain Dukes, Chief Executive Officer of Traws Pharma, said in a statement.
The biopharmaceutical company reported a net loss of $7.1 million, or $0.53 per share, for the quarter ended March 31, a sharp reversal from the $21.5 million in net income reported in the same period last year. Revenue was zero, down from $0.06 million. The new financing includes $10 million in upfront gross proceeds, with up to $50 million more from milestone-based warrants.
The financing is critical as Traws ended the quarter with only $3.1 million in cash. The new capital is earmarked to complete a human challenge trial for its lead influenza candidate, tivoxavir marboxil (TXM), which it hopes to initiate in the second quarter of 2026 in the UK.
Traws is advancing TXM as a potential once-monthly prophylactic agent against seasonal influenza. The company is currently conducting a Phase 1 bridging study in Australia to evaluate a compressed tablet formulation. A human challenge trial, which involves intentionally exposing healthy volunteers to a disease-causing agent under controlled conditions to test treatments, is planned to follow at hVIVO in the UK, pending regulatory approval.
However, the program faces significant hurdles in the United States. The U.S. Food and Drug Administration (FDA) has placed the Investigational New Drug (IND) application for TXM on a clinical hold, citing concerns with the toxicology data package. Traws said it is preparing a comprehensive response with the goal of resolving the hold and enabling global clinical studies by the end of the year.
Alongside its influenza program, Traws highlighted its new focus on developing an antiviral therapy for hantavirus, a rare but deadly rodent-borne virus that has no approved treatments. The company said it plans to move rapidly to advance a clinical candidate.
For the first quarter, research and development expenses nearly doubled year-over-year to $4.9 million from $2.5 million, which the company attributed to costs related to its antiviral clinical trial milestones.
The new financing and clinical updates are crucial for Traws as it navigates a challenging financial position. The company's ability to resolve the FDA's clinical hold and produce positive data from its upcoming UK trial will be key catalysts for investors. The next major event will be the initiation of the influenza challenge trial in Q2 2026.
This article is for informational purposes only and does not constitute investment advice.
