By John Vandermosten, CFA

NASDAQ:RANI

READ THE FULL RANI RESEARCH REPORT

On May 13^th Rani Therapeutics Holdings, Inc. (NASDAQ:RANI) reported first quarter 2025 results. Year to date, Rani has updated investors on ProGen’s PG102 asset and reported preclinical data for RT-114 and RT-116, or RaniPill semaglutide. In the financial sphere, the company paid down $3.8 million of debt and consumed ($12.0) million in operational expenses during 1Q:25. Rani’s lead program, RT-114, produced favorable preclinical data demonstrating superior bioavailability compared to the underlying molecule’s subcutaneous results. Most critically, Rani continues to interact with prospects to sign a deal with an established biopharmaceutical company which may include upfronts, milestones and royalties.

1Q:25 Operational and Financial Results

Rani reported first quarter results in a press release and Form 10-Q filing with the SEC on May 13^th. For the quarter ending March 31^st, 2025, revenues were $172,000, operating expense was ($12.0) million and net loss per share for Class A shareholders was ($0.22).

• Revenues of $172,000 were recognized representing an evaluation arrangement with a customer vs. $0;

• Research and development expenses totaled $6.6 million, down 13% from $7.6 million mostly due to lower compensation costs, a smaller team and reduced third party service costs;

• General & administrative expenses were $5.6 million, falling 13% from $6.4 million on lower compensation costs, reduction in workforce and lower other costs;

• Net interest expense was ($725,000) vs. ($745,000) due to lower cash balances;

• Non-controlling interest was ($5.5) million vs. ($7.3) million;

• Net loss for Class A shareholders was ($7.3) million vs. ($7.5) million or ($0.22) and ($0.29) per share.

As of March 31^st, 2025, cash and marketable securities totaled $15.9 million. This amount compares to the $27.6 million balance held at the end of 2024. Long-term debt was held on the balance sheet at $24.6 million. 1Q:25 cash used in operations and for capital expenditures was ($8.2) million versus ($9.4) million in the same prior year period. During the first quarter, Rani repaid $3.8 million in debt, reducing the carrying value of debt outstanding to $20.9 million. Management expects cash to be sufficient to support operations until 3Q:25.

Research Agreement with Chugai

A May 19^th press release informed investors that Rani had signed a research agreement with Chugai Pharmaceutical Co. on August 13^th, 2024. The agreement granted Chugai rights to develop two molecules with undisclosed targets. Since the signing, the partner has demonstrated bioavailability comparable with delivery via the subcutaneous route for both molecules. The partners are now evaluating feasibility of applying Rani’s technology to these antibodies.