Key Highlights

  • Research and development expense rose 659% to USD 10.6 million in the third quarter from USD 1.4 million, driven by PALI-2108 program costs and higher share-based compensation, according to the filing.
  • Net loss was USD 14.6 million, or USD 0.07 per share, against USD 2.9 million, or USD 0.38 per share, a year earlier, when far fewer shares were outstanding.
  • Cash and cash equivalents were USD 113.6 million at September 30, 2026, which management believes funds operations through readouts of the ASCENTRA-UC and ASCENTRA-CD Phase 2 trials.
  • The first patient in the global Phase 2 ASCENTRA-UC trial was dosed on October 27, 2026, with primary efficacy results expected in the fourth quarter of 2027.

R&D Surge Reflects the Move Into Phase 2

Palisade Bio (NASDAQ:PALI) filed its Quarterly Report on November 10, 2026 for the period ended September 30, 2026. Research and Development expense rose by about USD 9.2 million, including a USD 6.8 million net increase in PALI-2108 program expenses, which reached about USD 7.3 million, and USD 2.0 million more non-cash share-based compensation. General and administrative expense rose 235% to USD 5.1 million, with USD 2.9 million of the increase from share-based pay. For nine months, net loss was USD 34.8 million versus USD 7.9 million, after USD 0.5 million of license revenue. Other income was USD 1.1 million in the quarter versus USD 0.1 million, from Money Market holdings after the October 2025 offering.

PALI-2108 Heads Into Two Phase 2 IBD Trials

The clinical-stage company is developing oral therapies for immune-mediated and fibrotic diseases, led by PALI-2108, a once-daily prodrug designed to deliver PDE4 inhibition in the lower intestine. ASCENTRA-UC is a randomized, placebo-controlled study of about 204 patients with ulcerative colitis, with a primary endpoint of clinical remission at week 12. ASCENTRA-CD is an open-label study of about 60 adults with Crohn's disease, with enrollment expected in the first quarter of 2027 and results in the first quarter of 2028. In earlier Phase 1b cohorts, all five ulcerative colitis patients met clinical response criteria, and five Crohn's patients showed a mean endoscopic score reduction of about 47.5%. The company noted these findings came from small, uncontrolled cohorts and need confirmation in larger randomized trials.

Cash Runway, Burn Rate and the Dilution Question

Net cash used in Operating Activities was USD 23.3 million for nine months versus USD 7.7 million, while financing brought in USD 3.5 million. The Balance Sheet rests on the October 2025 offering, which raised net proceeds of about USD 127.6 million. Management believes cash funds operations through both Phase 2 readouts, but the filing warns it may seek further financing and there is no assurance it will be available on acceptable terms. Selling shares to raise it would dilute holders, and a trial miss would hit a company with a single asset in development.

Where Things Stand

Mainly the shift from early studies to two Phase 2 trials, plus heavy non-cash share-based pay. Palisade Bio (NASDAQ:PALI) spent USD 10.6 million on research and development in the quarter versus USD 1.4 million, and its per-share loss shrank only because the share count grew sharply. Cash of USD 113.6 million is said to last through the planned readouts, but the company has no approved product and a single development asset. Next markers are ASCENTRA-CD enrollment in early 2027 and the ASCENTRA-UC and ASCENTRA-CD results.