Vivoryon: Deficit Reduced by 57%, But Cash Reserves Depleting
German biotech company Vivoryon has reduced its annual deficit by 57% to 8.9 million euros in 2025 due to a substantial decrease in research and development expenses. However, its cash reserves have shrunk by 40% to 5.6 million euros, forcing the company to raise funds by the fourth quarter of 2026 to continue its clinical trials on diabetic kidney disease.
Significant Cut in R&D Expenses
Vivoryon has slashed its research and development spending, bringing the total from 14.1 million euros down to 4.4 million euros. This reduction is primarily due to the slowdown in the Phase 2 VIVIAD and VIVA-MIND studies, with clinical costs decreasing by 7.0 million euros and savings of 1.7 million euros in manufacturing. General and administrative expenses also dropped by 30%, from 6.9 million euros to 4.8 million euros, thanks to a 1.1 million euro reduction in personnel expenses and 0.6 million euros in legal fees. The total annual net loss amounted to 8.9 million euros compared to 20.6 million euros in 2024.
Operational Expenses Decrease but Cash Flow Challenges Persist
While operational expenses have fallen by 56% to 8.5 million euros (compared to 19.2 million in 2024), Vivoryon no longer benefits from cash inflows. In 2024, the company had generated 10 million euros from investment activities. With this funding source gone in 2025, cash reserves decreased from 9.4 million euros to 5.6 million euros despite an influx of 4.7 million euros from external financing. With the monthly cash burn remaining high, the management estimates that the current resources will cover needs until the fourth quarter of 2026, without additional funding.
Advancements in Clinical Trials and Patent Portfolio
In 2025, Vivoryon confirmed that its lead candidate, varoglutamstat, improves renal function (eGFR) in diabetic patients in two independent, randomized Phase 2 studies, VIVIAD and VIVA-MIND. The company plans to initiate a Phase 2b study focused on patients with advanced diabetic kidney disease (stage 3b/4), a strategic priority for 2026. However, the start of this study is contingent upon additional funding or a partnership, which the company is 'actively exploring.' Additionally, Vivoryon has expanded its patent portfolio with new U.S. protection covering the active polymorph of varoglutamstat, valid until 2044 with an option for a five-year extension. Concurrently, Vivoryon has identified VY2149, a next-generation QPCT/L inhibitor in the preclinical phase, whose development also depends on additional funding or a partnership.
