Eledon Narrows Third-Quarter Loss on Warrant Gain

The Tip Desk · November 13, 2026 · 3 min read

Cash, cash equivalents and short-term investments stood at $69.7 million as of September 30, 2026, with the company expecting that cash to fund operations into the second quarter of 2027.

Eledon Pharmaceuticals, Inc. (ELDN), a clinical-stage biotechnology company developing immune-modulating therapies, reported a net loss of $3.9 million, or $0.03 a share, for the third quarter of 2026, compared with a net loss of $17.5 million, or $0.21 a share, a year earlier.

The narrower reported loss included a non-cash gain of $17.0 million from changes in the fair value of warrant liabilities. Excluding non-cash items related to those warrant liabilities, the company said it would have recorded a net loss of $21.0 million for the three months ended September 30, 2026, versus $18.0 million for the comparable 2025 period.

Research and development expenses were $17.8 million in the quarter, including $0.9 million of non-cash stock-based compensation. General and administrative expenses were $3.9 million, including $1.0 million of non-cash stock-based compensation.

Cash, cash equivalents and short-term investments totaled $69.7 million as of September 30, 2026, down from $88.8 million as of June 30, 2026. The company said cash currently on hand is expected to fund operations into the second quarter of 2027.

Chief Executive Officer David-Alexandre C. Gros said the company continues to execute across key strategic priorities and is making progress in the tegoprubart clinical program across multiple transplant types, including plans to initiate a global Phase 3 LEGACY trial in kidney transplantation by year end.

The planned LEGACY trial remains on track to start in the fourth quarter of 2026, after a successful End-of-Phase 2 meeting with the FDA in the second quarter that established the regulatory framework for a late-2026 start. The trial is expected to enroll approximately 600 patients, with a primary endpoint of non-inferiority of tegoprubart versus tacrolimus at 52 weeks based on a composite of biopsy-proven acute rejection, graft loss and death.

The FDA granted Fast Track designation to tegoprubart for the prevention of rejection in kidney transplantation.

Updated long-term data from the Phase 2 BESTOW extension study, presented at the International Congress of the Transplantation Society in September 2026, showed tegoprubart-treated patients maintained statistically significantly higher mean estimated glomerular filtration rate at 18, 21 and 24 months, with an approximately 13 mL/min/1.73 m² advantage over tacrolimus at month 24 (71 vs. 58 mL/min/1.73 m²). There were no reported cases of biopsy-proven acute rejection in the tegoprubart arm beyond six months post-transplant, compared with seven events in the tacrolimus arm.

New patient-reported outcomes from the BESTOW program were presented at ASN Kidney Week 2026. The company said tegoprubart-treated patients demonstrated a mean improvement on the total Modified Transplant Symptom Occurrence and Symptom Distress Scale at 12 months while tacrolimus-treated patients experienced a mean worsening of symptom occurrence, and a statistically significant improvement on the Kidney Disease Quality of Life Short Form Symptoms and Problems Scale through 12 months.

The FDA cleared an IND for a planned company-sponsored registrational-path study of tegoprubart in islet-cell transplantation for patients with type 1 diabetes. The company listed initiation of that study among upcoming milestones over the next 12 months, along with an investigator-led study in de novo liver transplantation and FDA regulatory guidance on the path to market in kidney xenotransplantation.

The University of Chicago Medicine Transplant Institute expanded its investigator-initiated islet-cell study by enrolling three additional subjects, building on 12 patients treated to date who have achieved 100% insulin independence and demonstrated stable islet graft function through 22 months of follow-up.

The first highly sensitized kidney transplant patient was dosed with tegoprubart under a compassionate-use protocol at Duke University Medical Center, and a third patient was treated in an investigator-initiated kidney transplant tolerance-induction study at Massachusetts General Hospital.