Pulmatrix Inc. is executing a profound strategic transformation, marked by its pending merger with Cullgen and the complete divestiture of its core business assets. This radical pivot is fundamentally reshaping the biopharmaceutical company and is clearly reflected in its recent financial performance and market activity.
Market Anticipation and Recent Trading
Investor sentiment appears mixed as the market awaits the finalization of the proposed corporate actions. The stock, with a market capitalization of approximately $18.12 million, has sent conflicting signals. It posted a gain of 8.11% over the past seven trading days, yet has declined 8.20% since July 29, 2025. During the latest session, shares traded between $4.86 and $5.00, closing at $4.86 on a volume of 10,438 shares. This relatively low volatility suggests a holding pattern, with investors tying the company’s future prospects directly to the success of Cullgen’s developmental pipeline.
Q2 2025 Financials: A Portrait of Transition
The company’s second-quarter 2025 financial results quantify this period of deliberate transition. Revenue fell to $0, a stark drop from the $1.6 million reported in the same quarter the previous year. This was a direct result of the conclusion of the PUR1900 Phase 2b clinical trial.
The strategic wind-down is even more evident in the company’s expenditures. Spending on research and development plummeted from $2.8 million to under $100,000. Similarly, general and administrative costs were reduced by approximately $500,000, landing at $1.5 million.
Despite these figures, the company reported a reduced net loss per share (GAAP) of $(0.42), an improvement from $(1.59) in the prior year period. Crucially, Pulmatrix held $5.8 million in cash and equivalents as of June 30, 2025. Management has stated this liquidity is sufficient to fund operations through the expected closing of the merger.
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Key Financial Metrics (Q2 2025):
* Revenue: $0 (Prior Year: $1.6 Million)
* GAAP EPS: $(0.42) (Prior Year: $(1.59))
* R&D Expenses: < $100,000 (Prior Year: $2.8 Million)
* Cash Position (June 30, 2025): $5.8 Million
The Defining Merger with Cullgen
The central element of this transformation is the all-stock merger agreement with privately-held Cullgen. Shareholders gave their approval for the transaction on June 16, 2025. The deal remains contingent on receiving final approvals from the Nasdaq Stock Market and Chinese securities regulators.
Upon completion, the merger will create a new publicly-listed entity entirely focused on the field of Targeted Protein Degradation technology. This new company will inherit three degrader programs from Cullgen—two targeting oncology and one targeting pain management—all of which are currently in Phase 1 studies. This move represents a complete departure from Pulmatrix’s former focus on developing inhalable therapies for respiratory diseases.
Complete Divestiture of Legacy Assets
As a mandatory condition for the merger, Pulmatrix is divesting its entire iSPERSE™ technology platform and its associated clinical-stage assets. The portfolio being sold includes:
* PUR3100: A Phase 2-ready asset for the treatment of migraine
* PUR1800: A therapy for acute exacerbations of chronic obstructive pulmonary disease (AECOPD)
* PUR1900: An inhaled antifungal product candidate
This wholesale divestment strategy underscores a definitive and uncompromising exit from the company’s original business model.
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