Chemomab Therapeutics Ltd. Annual Report - How They Did This Year

Let's look at Chemomab Therapeutics' year, which ended December 31, 2025. We'll skip the fancy financial talk. Think of this as a chat with a friend. We'll discuss how the company is doing and what to watch.

We'll cover what they do and their money situation. We'll also look at big wins, bumps, and future possibilities. We only discuss available information.

Quick Company Facts

First, some basics about Chemomab:

• Where they're from: Chemomab Therapeutics is based in Israel.
• Where they trade: You can find their shares on the Nasdaq Capital Market under the ticker symbol CMMB.
• How Shares Work: One American Depositary Share (ADS) represents 80 regular Ordinary Shares.
• Total Shares Available: About 575.4 million ordinary shares existed at 2025 year-end. That equals roughly 7.2 million ADSs.

What They Do

Chemomab is a clinical-stage biotech company. They create targeted treatments for inflammation and fibrosis. (Fibrosis is like scarring in organs).

They target CCL24 signaling. CCL24 is a signaling protein, or chemokine. It helps immune cells gather. This promotes inflammation and scarring in tissues. Chemomab blocks CCL24 to stop or reverse this damage.

Their main drug in development is called nebokitug (CM-101). This drug is crucial; the company's future depends on it. Nebokitug is an antibody designed to stop CCL24. It is in clinical trials for several conditions. Key targets are primary sclerosing cholangitis (PSC) and systemic sclerosis (SSc).

Chemomab advanced nebokitug well in clinical trials:

• They have completed a Phase 1a safety study in healthy volunteers.
• They completed a Phase 1b study in MAFLD patients.
• They completed a Phase 2a study. It checked safety and liver scarring markers in MASH patients.
• They ran an exploratory study in COVID-19 patients with severe lung injury.
• Most importantly, nebokitug is in a Phase 2 trial for PSC patients. PSC is a rare, severe liver disease with no approved treatments. This trial is a key company focus.

A bit of history: The company formed from a March 2021 merger. Anchiano Therapeutics Ltd. merged with Chemomab Ltd. Then Anchiano became Chemomab Therapeutics Ltd. The current business mainly continues Chemomab Ltd.'s prior work.

How Their Money Situation Looks

Here's how their money looked this past year:

• Big Financial Hit: The company took a big $14.2 million capital loss. This one-time hit is fully accounted for. They don't expect to recover it. This greatly affected their year's finances.
• Costs with Related Parties: Chemomab had ongoing costs with "related parties." These are businesses or people connected to the company. Investors often check these deals. They look for conflicts or unfair terms. For 2025, these costs included:
  • Around $1.01 million (down from $1.23 million in 2024 and $1.32 million in 2023).
  • Another cost category was about $1.31 million. (Slightly up from 2024's $1.24 million, but way down from 2023's $3.07 million).
  • A third cost was about $389 thousand (down from $427 thousand in 2024 and $1.30 million in 2023). These related party costs seem to be falling. This could mean better cost management and fewer governance worries.
• Money Owed to Related Parties: They also owed money to these related parties:
  • About $74 thousand as of December 31, 2025 (slightly down from $75 thousand in 2024).
  • Another balance of about $458 thousand (down from $531 thousand in 2024). These balances changed little, showing a slight decrease in 2025 versus 2024.

As a clinical-stage biotech, Chemomab has not sold products. They have no revenue from sales yet. The company operates at a loss (not making a profit). High R&D costs for drugs drive this. Public company G&A costs also contribute. They expect significant losses to continue. This is as they develop nebokitug through clinical trials. They don't know when, or if, they'll become profitable. Staying profitable could also be tough. This means they'll likely need more funding down the road.

Here's a key financial update: Chemomab's cash and bank deposits (as of December 31, 2025) will only fund operations through the end of the first quarter of 2027. This short cash supply creates a "going concern" risk. It means the company might not continue without more money. They must raise much more money very soon. Selling more shares to raise money means your ownership slice shrinks. This is called dilution. Raising money depends on their share price. Broader economic conditions also matter. Inflation or global conflicts can affect investor willingness to fund risky ventures.

Any Big Wins or Bumps in the Road

• A Major Setback: The $14.2 million capital loss was a major setback this year. This directly hurt their profit.
• Clinical Progress (A Development Win): This isn't a commercial win yet. Still, Chemomab made great progress developing nebokitug in trials. They completed multiple early trials (Phase 1a, Phase 1b, Phase 2a, and an exploratory COVID-19 study). The ongoing Phase 2 trial in PSC patients is critical. This shows active development of their main drug. This progress is vital for a biotech company. It moves them closer to approval and sales.

What the Future Might Hold

Looking ahead, keep these important things in mind for Chemomab:

• Short Company History: Chemomab is a young company, started in 2011. They are not yet selling products. They haven't sold any products or made sales revenue yet. Their focus has been organizing, raising money, building patents, and running trials. Predicting their success is harder than for established companies. Their drug discovery approach is unproven. They lack commercial experience.
• Nebokitug is Key: Their future success depends heavily on nebokitug, their main drug. Poor trial results for nebokitug, or other drugs, could be a major setback. This might threaten the company's survival.
• Clinical Trials: A Long Road: Developing new drugs is a marathon, not a sprint. It has high costs and high failure rates. They must complete many more studies, including large, costly Phase 3 trials. These prove the drug works and is safe. Trials are very expensive and take years. Results are unpredictable. Bad results, serious side effects, or few eligible patients could cause delays. They might even abandon a drug. Few drugs entering trials get approved, typically under 10-15%. Approval in one country doesn't guarantee approval elsewhere.
• Approval Challenges: Even with great trial results, getting approval is tough. Agencies like the FDA or EMA must approve it. This process is long, complex, and approval is not guaranteed. Even if approved, they face strict rules. These cover manufacturing, marketing, and ongoing monitoring. FDA funding issues or global crises (like pandemics) could slow or stop approvals.
• Ongoing Losses & Funding Needs: As noted, the company expects to keep losing money. This is due to ongoing R&D and operational costs. Their cash only lasts until Q1 2027. They need much more money. They could sell shares, take on debt, or find partners. This funds nebokitug's development and market launch. If funding delays or fails, they might slow or stop drug programs. This would be disastrous. Selling more shares to raise money means your ownership slice shrinks. This is called dilution. It could reduce existing share value.
• Growing the Company: As they near market launch, they must grow their team. Key areas include drug development, regulatory, manufacturing, and sales. Managing this fast growth is tough and costly. It includes hiring and keeping skilled staff.
• Protecting Their Patents: Patents and intellectual property are vital for a biotech company. They must follow all patent rules: filing, paying fees, and defending against infringement. Without this, competitor protection could weaken or disappear. Others might then copy their innovations.
• International Operations: Based in Israel, with potential European manufacturing, they face international risks. These include political instability, economic changes, and varied regulations. Conflicts in Israel and Ukraine could affect operations. They might impact supply chains and access to money. Some costs are in foreign currencies. So, currency changes or inflation could affect their finances. They received research grants from the Israeli government. This means strict rules apply to moving manufacturing or core technology outside Israel. Breaking these rules could mean penalties. It might also hinder global tech sales.
• Competitors: The biotech world is very competitive. Other companies might find, develop, or sell products faster or better than Chemomab. For PSC and SSc, other companies develop therapies. Some have more advanced drugs or more money.
• Market Adoption: Even if nebokitug is approved, doctors, patients, or insurers might not use or pay for it. Pricing, how well it works versus other treatments, and insurance coverage are key. These factors determine a drug's commercial success.
• Production Risks: Chemomab relies on outside companies (CMOs) to make their drugs. This includes supplies for trials and potential sales. Supplier problems, like material shortages or delays, could halt drug development. It could also impact future sales efforts.
• Selling the Drug: If nebokitug is approved, Chemomab needs strong sales and marketing. If they can't build sales teams or find partners, they can't sell nebokitug. This limits its commercial potential, even if approved.
• Share Price Swings: Their share price (ADSs) has always swung widely. This will likely continue. It's due to biotech risks, reliance on one drug, and funding needs. Your investment could swing a lot. This makes it a high-risk investment.
• No Payouts: Don't expect regular payouts (dividends) from them. They don't have revenue yet. They reinvest in R&D. Your return will likely come only from share price growth, if successful.
• Risk of Nasdaq Removal: If they don't meet Nasdaq rules, their shares could be removed (delisted). Rules include minimum bid price ($1.00), market value, or shareholder equity. This makes buying or selling shares much harder. It could drop their price, hurting liquidity and investor trust.
• US Tax Rules (PFIC): For U.S. investors, Chemomab might be a "Passive Foreign Investment Company" (PFIC). This could mean tougher tax rules. Expect complex reporting. Also, taxes on gains or payouts might be higher.
• Development Delays: Trial setbacks, regulatory delays, or funding issues could delay targets. This would delay products reaching market. It could also hurt the business and its value.