Rafael Holdings, Inc. reported its second‑quarter fiscal 2026 financial results for the three months ended January 31, 2026. Net loss widened to $6.4 million, or $0.13 per share, compared with a $4.6 million loss, or $0.19 per share, in the same period a year earlier. The increase is largely attributable to the consolidation of Cyclo Therapeutics’ operating costs following the March 2025 merger.
Cash and cash equivalents fell to $37.8 million at the end of the quarter from $45.5 million a year earlier, giving the company a runway of roughly 4½ to 5 quarters at the current burn rate. Research and development expenses rose to $4.5 million, up from $0.9 million a year ago, driven by the expanded spend on Cyclo’s pivotal Phase 3 TransportNPC trial. General and administrative costs decreased to $2.3 million from $2.6 million, reflecting payroll reductions and professional‑fee cuts.
Operating loss for the quarter was $10.1 million, while the six‑month period ended January 31, 2026, recorded a net loss of $16.2 million, or $0.32 per share, versus $13.6 million, or $0.57 per share, in the prior year period. The discrepancy between the reported operating loss and the six‑month net loss underscores the impact of one‑time charges and the higher R&D spend associated with the Phase 3 trial.
Management emphasized the positive outlook for the Phase 3 study. Chief Executive Officer Howard Jonas said, “We remain pleased with the progress of our pivotal Phase 3 TransportNPC study evaluating Trappsol® Cyclo™ for the treatment of Niemann‑Pick Disease Type C1, which the Data Monitoring Committee recommended continuing after their review of prespecified safety and efficacy data at 48 weeks.” Chief Operating Officer Joshua Fine added that the company is on track to complete the 96‑week trial and expects preliminary top‑line results in the third quarter of the calendar year.
The positive update on the Phase 3 trial has been well received by the market, reflecting investor confidence in the long‑term potential of Trappsol Cyclo. The company’s cash reserves and the ongoing clinical progress provide a foundation for future revenue generation once the drug receives regulatory approval.
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