aibioPalisade Bio reports first quarter 2026 results and $132.6 million in cash
Tickers PALI
The company reported cash and cash equivalents of $132.6 million at March 31, 2026. It said the Phase 2 ulcerative colitis trial of PALI-2108 is expected to start in the third quarter of 2026.
Key facts
- Company
- Palisade Bio, Inc. (NASDAQ: PALI)
- News type
- Company Updates
- Primary source
- Palisade Bio, Inc. 8-K (2026-05-12)
Palisade Bio, Inc. (Nasdaq: PALI) reported financial results for the quarter ended March 31, 2026, in an exhibit to an 8-K dated May 12, 2026. The company had cash and cash equivalents of $132.6 million at March 31, 2026. It said the Phase 2 ulcerative colitis (UC) trial of its lead candidate, PALI-2108, is expected to begin in the third quarter of 2026, and that it recently reported results from the Phase 1b fibrostenotic Crohn's disease cohort.
Clinical progress
The company said PALI-2108 has now completed Phase 1a and Phase 1b studies, with what it calls positive data previously reported. Phase 1 studies are small and mainly test safety, and the release gives no patient numbers or p-values for the clinical signals it describes. The results showed a favorable safety and tolerability profile, evidence of target engagement in ileal and colon tissue, and early signals of clinical activity in Crohn's disease.
Chief Executive Officer JD Finley said in the release: "We continue to see a consistent and differentiated profile emerging for PALI-2108 across IBD." He added that the totality of data supports the decision to advance into Phase 2 development in both ulcerative colitis and Crohn's disease.
The regulatory and trial timeline
The release sets out a timeline for the Phase 2 program. The company expected to submit an IND for the Phase 2 UC trial in the second quarter of 2026 and targets the start of that trial in the third quarter of 2026. For the Phase 2 Crohn's disease trial, it expects to submit an IND in the second half of 2026, with trial initiation targeted for the first quarter of 2027.
The company expects the primary efficacy readout from the Phase 2 UC trial in the second half of 2027. It expects the Phase 2 Crohn's disease readout in early 2028. The company describes PALI-2108 as an orally administered, once-daily PDE4 inhibitor prodrug designed for targeted activation in the ileum and colon.
Financial results
Research and development expenses were $6.4 million for the three months ended March 31, 2026, compared with $1.0 million for the same period in 2025. The increase of $5.4 million was mainly attributable to higher research and development employee-related expenses, including non-cash share-based compensation. It also reflected a net increase in clinical trial costs for the ongoing PALI-2108 trials and higher chemistry, manufacturing and controls expenses.
General and administrative expenses were $4.4 million for the quarter, compared with $1.4 million a year earlier. The increase of $3.0 million was mainly attributable to higher employee-related expenses, including non-cash share-based compensation, and higher professional fees.
The company's full-year financial data shows a net loss of $16.8 million for 2025, compared with $14.4 million for 2024. Research and development expense was $16.0 million for 2024. Cash used in operations was $10.8 million in 2025 and $12.2 million in 2024.
The company and its lead candidate
PALI-2108 is a once-daily, oral prodrug designed for targeted delivery of PDE4 inhibition to the terminal ileum and colon. The prodrug is pharmacologically inactive until it reaches the lower intestine, where bacterial enzymes convert it into the active inhibitor at sites of inflammation and fibrosis. The company says this approach is designed to reduce peak plasma levels and the tolerability limitations that have constrained systemic PDE4 inhibitors.
What comes next
The company said it expects the Phase 2 UC trial to begin in the third quarter of 2026. Costs are climbing: research and development was $6.4 million against $1.0 million a year earlier, and general and administrative expense was $4.4 million against $1.4 million. The company says its cash on hand is sufficient to fund operations through the Phase 2 UC readout expected in the second half of 2027 and the Phase 2 Crohn's disease readout expected in early 2028.