Upstream Bio’s Net Loss Widens to $41.2 Million in Third Quarter
Key Facts
Upstream Bio reported results on November 10 for the quarter ended September 30, 2026, posting a net loss of $41.2 million, compared with $33.7 million in the same period of 2025, according to the company’s statement. The quarterly result came as annual losses widened alongside increased spending to develop its drug programs. Collaboration revenue was $395,000, versus $683,000 a year earlier. The results were shaped by research and administrative expenses as the company continued to rely on its cash resources to fund its plans. The company said it had $207.4 million in cash, cash equivalents and short-term investments as of September 30, which it expects to fund planned operations through 2027.
Research and development expenses rose to $36.6 million in the third quarter from $33.0 million in the year-earlier period, an increase of $3.6 million. The company attributed the rise to employee costs, including stock-based compensation, and higher clinical costs for verekitug programs. General and administrative expenses also increased to $7.2 million from $5.5 million a year earlier, up $1.7 million. The company linked the increase in that category to employee costs and professional fees. Higher research and administrative expenses coincided with a decline in quarterly collaboration revenue to $395,000 from $683,000.
Losses also widened in the first nine months of 2026, with net loss reaching $121.5 million, compared with $101.0 million in the same period of 2025, according to the company’s filing with the U.S. Securities and Exchange Commission. Operating activities used $137.7 million in cash during the nine months ended September 30, compared with $102.6 million in the year-earlier period. The company said in its filing that it expects its current resources to cover operating expenses and capital expenditures through 2027. It also said it would need additional financing to continue its operations. The filing shows that the company has not yet marketed verekitug and does not expect revenue from its sales in the next few years, if any.
The company is counting on verekitug’s progress in clinical trials and plans to begin Phase 3 trials in severe asthma and chronic rhinosinusitis with nasal polyps during the first quarter of 2027. Results from the Phase 2 VALIANT study, published in September, showed that a 100 mg dose every 12 weeks reduced the annualized asthma exacerbation rate by 56% compared with placebo, with statistical significance. The study included 478 patients with severe asthma, enrolled regardless of baseline eosinophil count or levels of Type 2 biomarkers. The Phase 2 VENTURE trial in chronic obstructive pulmonary disease includes about 480 participants, and the company expects data in the second half of 2027. The company also expects data from the long-term follow-up VALOUR study in the second half of 2027, with retention of eligible participants exceeding 90%.
The company’s near-term agenda includes participation in the Truist Securities Biotech Symposium in New York on November 12, 2026, according to the upcoming events listed in its earnings statement. The event is scheduled two days after the third-quarter results announcement. In its financing update, the company disclosed that it had sold 239,797 shares through its at-the-market offering program through September 30, generating net proceeds of about $2.1 million. The company made no sales under the program during the third quarter. It lists the timing of Phase 3 trials and upcoming clinical study data among its planned milestones for 2027.