VistaGen Posts $0.24 Per-Share Loss in Fiscal Second Quarter as Losses Narrow
Key Facts
VistaGen reported results on November 13 for its fiscal second quarter of 2027, posting a basic and diluted loss of $0.24 per share for the three months ended September 30, 2026, compared with a loss of $0.54 in the year-earlier period. Net loss was $10.7 million, versus $19.4 million a year earlier. The company said revenue was $138,000, down from $258,000 in the comparable quarter. The results place the per-share loss and revenue in a fiscal period ending in September, while the company said it had enough liquidity to fund operations into 2027. No comparison of the per-share loss or revenue with analyst expectations was available from a reliable open source.
The narrower net loss coincided with research and development expenses falling to $6.6 million from $15.9 million a year earlier. VistaGen attributed the decline mainly to lower clinical development spending after completing study extensions and a repeat-dose study, along with lower personnel-related expenses. General and administrative expenses, by contrast, edged up to $4.5 million from $4.4 million. The company said the increase reflected higher consulting and professional services fees, driven by legal fees, partially offset by lower compensation and stock-based expenses. These items reflect a change in spending during the quarter compared with the prior-year period.
Cash, cash equivalents and marketable securities totaled $20.0 million at September 30, 2026. VistaGen said that balance, based on current operating plans, was sufficient to fund operations into 2027. In its November 13 announcement, the company said funding would not extend more than a year from the announcement date. It also said it had implemented targeted cost-management initiatives to prioritize capital allocation among selected clinical programs and extend its operating runway. The balance and stated policy make clinical development funding part of the financial results picture, alongside the decline in quarterly expenses.
The spending path is tied to the company's plan to develop fasedienol to treat social anxiety disorder. VistaGen said the U.S. Food and Drug Administration provided constructive feedback on using the Liebowitz Social Anxiety Scale as the primary endpoint in a potential Phase 3 study, and recommended interim assessments to measure whether acute effects could lead to longer-term functional improvement. On November 9, the company said it would add interim assessments using electronic diaries and qualitative patient questionnaires, then submit a revised protocol to the agency. It plans to focus future Phase 3 development on overall treatment of the disorder across the broader patient population, rather than limiting it to acute treatment. The company said it would make changes to the study design in light of the agency's feedback.
The study redesign plan follows fasedienol's failure to meet the primary endpoint in the overall PALISADE-4 group of 238 participants, according to results the company announced in June 2026. VistaGen, by contrast, reported clinically meaningful improvement in social anxiety symptoms over four months in an open-label extension, based on clinician-administered and patient-reported measures. The announced preliminary results included an average improvement of 31.4 points on the Liebowitz scale at month four, while average improvement on the SPIN scale was 14.9 points, with at least a 10-point improvement recorded for 59% of participants on that measure. The company said the open-label extension safety group included 322 participants, and discontinuations due to adverse events were 1.6%, with no cases attributed to fasedienol. These results remain part of the clinical program's background as the company said it would redirect its Phase 3 work.
The company disclosed in a regulatory filing that a workforce reduction of approximately 31% was implemented on October 26 to reduce operating expenses, preserve capital and align staffing with the priorities of its advanced programs. At the close of trading on November 12, ahead of the results announcement, the company's share price was $0.1788. No verified information was available here to confirm the day's trading range. The results disclosure follows the company's November announcement of regulatory feedback and its plan to amend the Phase 3 protocol. VistaGen says the next step includes adding interim assessments and submitting the revised protocol to the Food and Drug Administration.