Surrozen, Inc. Reports Fourth Quarter and Full Year 2025 Financial Results and Provides Business Update

Key Highlights

• IND Application for SZN-8141 Expected in 2H 2026: Surrozen plans to submit an Investigational New Drug (IND) application for its lead candidate, SZN-8141, targeting retinal diseases, in the second half of 2026.
• Upcoming Scientific Presentation: Scheduled presentation at the 2026 ARVO Annual Meeting on May 4, 2026, featuring preclinical data on Wnt signaling activation synergizing with VEGF inhibition in retinal vascular disease models.
• Boehringer Ingelheim Milestone: Achievement of a research milestone for SZN-413, resulting in a \$5 million payment to Surrozen. This milestone reflects successful completion of IND-enabling GLP toxicology studies.
• Leadership Strengthening: Formation of a Clinical Advisory Board with retinal disease experts. Key appointments include Daniel Chao, M.D., Ph.D. (VP & Head of Clinical Development) and Andrew Malei (Chief Financial Officer).

Financial Highlights

• Cash Position: \$89.2 million in cash and cash equivalents as of December 31, 2025, up significantly from \$34.6 million at year-end 2024. Additional proceeds of \$26.9 million from stock sales in January 2026 and \$3.3 million from warrant exercises in early 2026 bolster liquidity.
• Revenue: Total revenue for 2025 was \$3.5 million, primarily from research service revenue related to TGF-β antibody collaboration, which was terminated in November 2025. No collaboration and license revenue in 2025, compared to \$10 million in 2024.
• R&D Expenses: Increased to \$29.4 million for 2025 (from \$21.1 million in 2024), reflecting higher manufacturing, lab, and consulting costs for ophthalmology programs. Decrease in clinical expenses due to discontinuation of SZN-043.
• G&A Expenses: \$16.2 million for 2025, up from \$15.1 million in 2024, mainly due to increased professional service fees.
• Other Income/Expenses:
  • Interest income: \$3.0 million (up from \$1.7 million).
  • Non-cash losses: \$71.1 million loss on execution of 2025 PIPE, \$104.8 million loss on change in fair value of tranche liability, \$2.1 million loss on amendment/cancellation of warrants, \$26.3 million other expense (driven by warrant liability changes).
  • Net loss: \$242.0 million (\$32.37 per share) for 2025, compared to \$63.6 million (\$21.67 per share) for 2024.

Pipeline and Ophthalmology Portfolio

• SZN-8141: Developed for diabetic macular edema (DME) and wet age-related macular degeneration (AMD). Combines Frizzled 4 (Fzd4) agonism with VEGF antagonism. Preclinical data shows stimulation of Wnt signaling, normal retinal vessel regrowth, and suppression of pathological vessel growth. Potential to treat multiple retinopathy indications and differentiate from current therapies.
• SZN-8143: Targets DME, wet AMD, and uveitic macular edema (UME). Triple mechanism with Fzd4 agonism, VEGF, and IL-6 antagonism. Demonstrated similar benefits in preclinical models, potentially superior to single-agent therapies.
• Boehringer Ingelheim Partnership (SZN-413): Bi-specific antibody designed using Surrozen’s SWAP™ technology. Licensed exclusively to BI with potential for up to \$586.5 million in milestones and royalties. Preclinical data supports efficacy in stimulating Wnt signaling, normal vessel regrowth, and reducing vascular leakage. BI milestone triggered \$5 million payment in March 2026.

Balance Sheet and Capital Structure

• Assets: Total assets of \$98.7 million as of December 31, 2025, compared to \$48.5 million in 2024.
• Liabilities: Total liabilities surged to \$286.5 million (from \$69.8 million), including \$158.7 million in tranche liability and \$112.5 million in warrant liabilities.
• Stockholders’ Deficit: At year-end 2025, Surrozen reported a stockholders’ deficit of \$187.8 million, a sharp increase from \$21.4 million deficit in 2024, largely due to non-cash PIPE-related losses and tranche liabilities.

Potential Price-Sensitive Information

• Significant Net Loss: The company reported a large net loss due to non-cash expenses related to PIPE transactions and changes in fair value of financial instruments. This magnitude of loss may impact investor sentiment and share price.
• Cash Position and Fundraising: Surrozen improved liquidity via ATM stock sales and warrant exercises, but the large liabilities and ongoing R&D expenses highlight continued need for capital.
• Pipeline Milestones: Progress toward IND submission for SZN-8141 and positive preclinical results may be viewed favorably, especially if the future clinical trials are successful. The \$5 million milestone received from Boehringer Ingelheim, and potential for up to \$586.5 million in future milestone payments and royalties, represent material future upside.
• Leadership Changes: Appointment of experienced executives and formation of a Clinical Advisory Board signal a strategic focus on ophthalmology and may strengthen investor confidence.
• Termination of TGF-β Collaboration: Loss of research service revenue from related party collaboration may affect short-term revenue, but refocuses the company on its proprietary pipeline.

Outlook

Surrozen’s continued advancement in Wnt pathway-based ophthalmology therapeutics, upcoming IND application for SZN-8141, partnership with Boehringer Ingelheim, and strengthened leadership position the company for potential long-term growth. However, substantial net losses, increased liabilities, and reliance on future fundraising or milestone payments are key risks that investors must monitor.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. All forward-looking statements are based on current expectations and involve risks and uncertainties. Actual results may differ materially. Investors should review Surrozen’s SEC filings and consult with a financial advisor before making any investment decisions.

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