Phio Pharma Surges on Promising Skin Cancer Trial Data, New Funding
Biotech company reports compelling tumor clearance rates in its lead drug candidate and extends its cash runway into the first half of 2027.
Shares of Phio Pharmaceuticals Corp. (NASDAQ: PHIO), a clinical-stage biotechnology company, gained significant investor attention following the announcement of positive new data from a Phase 1b trial of its lead cancer drug, PH-762. The company coupled the promising clinical results with a strengthened financial position, extending its operational cash runway into the first half of 2027.
The updated results come from the fifth and final cohort of its ongoing trial targeting advanced non-melanoma skin cancers. In data shared from the company’s third-quarter financial report, pathologic analysis showed compelling responses in patients treated with PH-762. Among three patients in the final group, one achieved 100% tumor clearance, a second saw greater than 90% clearance, and the third experienced over 50% clearance by day 36 of treatment.
Crucially for a clinical-stage therapy, PH-762 has maintained a favorable safety profile. The company reported no dose-limiting toxicities or significant treatment-related adverse events, a key factor as it considers advancing the program to later-stage trials. Across all five cohorts of the study, which included 16 patients with cutaneous squamous cell carcinoma (cSCC), the treatment produced six complete responses and two near-complete responses.
“These results further reinforce our belief that PH-762 can provide a meaningful clinical benefit and a favorable safety and tolerability profile for patients with advanced non-melanoma skin cancer,” the company noted in its business update.
For a micro-cap biotech firm with a market capitalization of approximately $9 million, financial stability is as critical as clinical progress. Phio addressed this directly, reporting that the recent exercise of certain warrants is expected to provide gross proceeds of approximately $13.4 million. This capital injection is transformative for the company, extending its cash runway into the first half of 2027 and providing the necessary resources to advance its pipeline without the immediate threat of further dilution.
This financial bolstering follows a third quarter where the company posted a narrower-than-expected loss per share of -$0.44, beating analyst estimates of -$0.46. While a minor beat, it contributes to a narrative of disciplined operational management.
Analysts have taken note of the developments. The lone analyst covering the stock maintains a "Strong Buy" rating with a price target of $14.00, suggesting substantial upside from its current levels. Following the recent news, an analyst at Sidoti revised their full-year 2025 earnings estimates for Phio upwards, from a loss of $1.77 per share to a loss of $1.38 per share.
Phio’s therapeutic approach is centered on its proprietary INTASYL self-delivering RNA interference (RNAi) technology platform. The technology is designed to silence or down-regulate over-expressed genes that contribute to cancer's growth and ability to evade the immune system. PH-762 specifically targets PD-1, a well-known checkpoint protein that cancer cells exploit to hide from immune attack.
With a strengthened balance sheet and encouraging clinical data for its lead candidate, Phio Pharmaceuticals is now positioned to define the next steps for the PH-762 program. The company will likely engage with regulators to discuss the design of a potential Phase 2 study, a critical step toward validating the drug's efficacy in a larger patient population.