Rani Therapeutics beats earnings as GLP-1 pill advances
Biotech firm reports narrower losses, advances obesity drug with Chugai deal bolstering balance sheet
Rani Therapeutics reported fourth-quarter and full-year 2025 results that exceeded analyst expectations, as the biotechnology company advances its oral obesity treatment through clinical testing with a strengthened financial position following a major pharmaceutical partnership.
The company recorded a net loss of 41 cents per share for the full year, narrower than the 47-cent loss analysts had projected, representing a 43% improvement over estimates. Contract revenue reached $1.5 million in the fourth quarter, bringing full-year contract revenue to $1.6 million. The net loss narrowed 27% year-over-year to $41 million.
"We ended 2025 with significant momentum across our business," the company stated in its earnings announcement. Rani Therapeutics closed the period with $49.7 million in cash and marketable securities, providing a runway extending into the fourth quarter of 2027. The company also reported eliminating all debt during the year.
The financial improvement follows a strategic partnership announced in October with Chugai Pharmaceutical that could generate up to $1.085 billion in total value. The agreement includes a $10 million upfront payment to Rani, with eligibility for up to $75 million in technology transfer and development milestones and an additional $100 million in sales-based milestones. Chugai will pay single-digit royalties on commercial sales of products developed under the collaboration, which combines Rani's RaniPill oral delivery technology with Chugai's rare disease antibody treatments.
Separately, Rani initiated a Phase 1 clinical trial in January for RT-114, an orally administered RaniPill capsule containing PG-102, a GLP-1/GLP-2 dual agonist developed with ProGen Co., Ltd. for obesity treatment. The study will assess safety, tolerability, bioavailability, pharmacokinetics, and weight loss effects. Preclinical data demonstrated oral delivery of PG-102 with bioavailability and weight loss comparable to subcutaneous injection.
Rani and ProGen share development costs equally, along with potential operating profits and losses from commercialization. Rani leads development efforts through Phase 1 trials.
Despite the positive operational developments, Rani's stock has declined approximately 22% from its February highs, reflecting broader market reassessment of biotechnology risk. Shares currently trade at $1.08, well below the 52-week high of $3.87 reached earlier this year, though still above the 52-week low of $0.39.
The three analysts covering Rani Therapeutics maintain bullish ratings, with one strong buy and two buy recommendations and an average price target of $8.00—more than seven times current levels. Institutional investors hold approximately 50.6% of shares outstanding.
The company's RaniPill technology is designed to enable oral administration of biologics that traditionally require injection, addressing patient adherence challenges in treatments for chronic conditions. Rani Therapeutics' pipeline spans multiple therapeutic areas, with the obesity program through RT-114 representing one of its most advanced clinical candidates.
Investors will be watching for interim data from the RT-114 Phase 1 trial, as well as potential progress under the Chugai collaboration, as key catalysts for the stock. The company's cash position provides operational flexibility through late 2027, allowing time for clinical readouts without immediate dilutive financing needs.