Traws Pharma Inc. (NASDAQ:TRAW) shares gained 3.9% in pre-market trading on Monday after the clinical-stage biopharmaceutical company reported a second-quarter loss that was narrower than Wall Street had anticipated.
For the quarter ended June 30, 2026, Traws posted an adjusted loss of $0.16 per share, comfortably beating the analyst consensus estimate for a loss of $0.43 per share.
The company generated no revenue during the quarter, compared with $2.7 million in the corresponding period of 2025.
One-off licensing item drives year-on-year revenue decline
The absence of second-quarter revenue reflected an unusual comparison with the previous year rather than a decline in recurring product sales.
Revenue recognised during the second quarter of 2025 primarily consisted of non-recurring deferred revenue associated with the termination of a licensing agreement covering Traws Pharma’s legacy oncology programme.
Despite the year-on-year revenue decline, investors responded positively to the smaller-than-expected quarterly loss, sending the shares higher ahead of the opening bell.
Tivoxavir marboxil regulatory resubmission targeted for Q3
Traws Pharma is working towards resubmitting tivoxavir marboxil to regulators during the third quarter of 2026 after receiving feedback from the UK’s Medicines and Healthcare products Regulatory Agency.
“Following the MHRA’s review, we are moving quickly to generate the revised toxicology package the agency identified, and we expect to resubmit by the end of the third quarter of this year,” said Iain Dukes, Chief Executive Officer of Traws Pharma.
The revised toxicology package is intended to support the initiation of a Phase 2a human influenza challenge study.
The programme is also facing a regulatory hurdle in the U.S., where the Food and Drug Administration has placed the drug’s Investigational New Drug application on clinical hold because of concerns surrounding the toxicology data package.
Traws is preparing a response to the FDA and aims to resolve the clinical hold by the end of 2026.
R&D spending declines while administrative costs increase
Research and development expenditure fell to $1.1 million during the second quarter from $2.3 million a year earlier.
The reduction was mainly attributable to lower spending on the tivoxavir marboxil development programme.
General and administrative expenses moved in the opposite direction, rising to $3.5 million from $1.7 million in the prior-year quarter. Traws attributed the increase primarily to higher professional fees and stock-based compensation.
Cash runway expected to extend into early 2027
Traws Pharma finished the second quarter with cash and cash equivalents of $5.0 million as of June 30, 2026, up from $3.8 million at the end of 2025.
Management said its existing cash resources, combined with anticipated proceeds from the company’s at-the-market equity programme, should provide sufficient funding to maintain operations into the first quarter of 2027.
Attention will now centre on the regulatory progress of tivoxavir marboxil, with the planned MHRA resubmission in the third quarter and the company’s efforts to resolve the FDA clinical hold by year-end representing important upcoming milestones.
Traws Pharma stock price
