NervGen Pharma Secures Funding for Phase 3 Spinal Cord Study
The biotechnology company ended June 30, 2026, with 86.8 million Canadian dollars in cash and cash equivalents
NervGen Pharma Corp. (NGEN), a clinical-stage biopharmaceutical company developing neuroreparative therapeutics for spinal cord injury, reported a net loss of 30.9 million Canadian dollars for the six months ended June 30, 2026. The company said this cash position is expected to fund operations through the anticipated topline data readout from its RESTORE study in the first half of 2028.
The company's liquidity increased following a 60.0 million US dollar underwritten public offering. This financing contributed to a net increase in cash and cash equivalents of 64.7 million Canadian dollars during the first six months of 2026.
Operating expenses rose as the company advanced its clinical pipeline. Research and development expenses reached 12.8 million Canadian dollars for the six months ended June 30, 2026, compared to 5.9 million Canadian dollars in the same period the previous year. The increase was driven by higher spending on clinical and regulatory activities, which rose to 5.0 million Canadian dollars from 1.1 million Canadian dollars. Chemistry, manufacturing and controls costs also increased to 4.3 million Canadian dollars from 700,000 Canadian dollars.
General and administrative expenses for the six-month period were 7.0 million Canadian dollars, compared to 6.6 million Canadian dollars in 2025. Stock-based compensation within this category totaled 3.0 million Canadian dollars.
Financial results were impacted by a 13.6 million Canadian dollar unrealized loss on warrant derivatives during the first six months of 2026, compared to a 700,000 Canadian dollar loss in the prior-year period. This contributed to a basic net loss of 0.36 a share for the six months ended June 30, 2026, compared to 0.18 a share for the same period in 2025.
The company previously received 3.4 million Canadian dollars from a grant to support a Phase 1b/2a clinical trial in individuals with spinal cord injury, though the grant has now concluded.
NervGen said it achieved alignment with the FDA on the clinical trial design for RESTORE, a Phase 3 registrational study of its lead drug candidate, NVG-291. Site activation and screening for the study are expected to begin in September 2026, with the first participant anticipated to be dosed shortly thereafter.