DMRA — Q2 2026 Financial Report Analysis

Damora Therapeutics (formerly Galecto) lost $31.2 million in the second quarter of 2026, against $3.4 million a year earlier, as spending on its three blood-cancer antibodies ramped up. The company has no revenue. What matters for a company at this stage is how much cash it has and how fast it burns it: Damora ended June with $540.5 million in cash after a $295.5 million stock offering in February and a $29.3 million at-the-market share sale in the quarter, and it says that money lasts into the second half of 2029. The year-ago figures belong to Galecto's old, mostly wound-down business before it acquired Damora in November 2025, so the year-over-year percentages say little about how the current company is doing.

Results

n/m = not meaningful: the 2025 figures are Galecto before the Damora acquisition. Operating margin isn't shown because there is no revenue to measure it against.

For the first half, the net loss was $59.0 million ($0.79 per common share) versus $6.0 million in H1 2025. Quarter on quarter — the more useful comparison for this company — R&D rose to $25.5 million from $23.8 million in Q1, and the net loss to $31.2 million from $27.8 million.

Where the money went

Research and development (the cost of discovering, manufacturing and testing the drugs) was $25.5 million. The filing breaks it down:

The largest item is manufacturing — building drug supply for DMR-001 ahead of a trial that has only just started, and for DMR-002 ahead of its planned first regulatory submission in the second half of 2026. The filing says the entire $4.4 million increase in preclinical and clinical costs was work done by Paragon Therapeutics, the antibody-discovery company that created all three Damora drugs.

General and administrative costs rose to $9.5 million from $2.0 million; $4.5 million of the $7.5 million increase was stock-based compensation, with $1.3 million more for personnel and $0.8 million for professional fees.

Interest on the cash pile earned $4.1 million, which offset about 12% of the quarter's $35.0 million operating costs.

What the pipeline is

All three candidates target mutant calreticulin (mutCALR), a faulty protein that drives about 25% of essential thrombocythemia (ET, a bone-marrow disorder that makes too many platelets) and about 35% of myelofibrosis (MF, a more severe disorder that scars the bone marrow):

• DMR-001 — an antibody designed to block the faulty protein's signal, built to last long enough in the body for a once-monthly injection under the skin. The Phase 1/1b trial has started, with approval from a health authority in the first country; more countries are to be added in the second half of 2026. The first dose is 100 mg monthly.
• DMR-002 — an antibody designed to help the immune system kill the diseased cells; Damora licensed it from Paragon on April 28, 2026, with the first regulatory submission planned for the second half of 2026.
• DMR-003 — a bispecific antibody that brings T cells (immune cells) to the diseased cells; first submission planned for 2027.

Damora is not first in this space: the filing names INCA033989, a competing anti-mutCALR antibody already in clinical trials from another company. Damora's argument that its drug is better rests on preclinical data presented at EHA 2026, where DMR-001 bound the protein more tightly and had a 15-day half-life in monkeys versus 3.1 days for a reference antibody Damora made itself. These are lab and animal results compared against Damora's own reference antibody, not a head-to-head trial against the competitor, and the filing says so.

What the headline numbers hide

• Cash burn is lower than the loss. Cash used in operations was $21.9 million in Q2 against a $31.2 million net loss. The gap is mostly $10.7 million of stock-based compensation, which costs no cash. On a cash basis, the $540.5 million would last about six years at the current pace; management's "into 2H 2029" (roughly three years) tells you it expects spending to roughly double as the DMR-001 trial expands and DMR-002 and DMR-003 move into the clinic. The runway figure is the one to use.
• Dilution has already happened, and more is built in. Common shares went from 1.6 million at December 31, 2025 to 61.7 million at June 30, 2026, as Series C preferred stock from the November 2025 private placement converted and the February offering added 16.6 million shares at $19.00. Another 16,366 Series B and 1,722 Series C non-voting preferred shares remain, each convertible into 1,000 common shares (about 18.1 million more). That is why loss per share fell from $(2.60) to $(0.39) while the loss itself grew ninefold: the per-share number is not an improvement in the business.
• A related-party warrant that keeps going. Under the Paragon deal, Paramora (a Paragon vehicle that shares profits with Paragon employees) receives warrants for 1% of Damora's fully diluted shares each year. The 2025 grant was 628,302 warrants at $23.01; the one due December 31, 2026 was valued at about $19.2 million at June 30. This shows up as $9.5 million of R&D expense in the first half. Paragon is also Damora's main research supplier ($10.3 million of Q2 expense, $12.1 million paid in cash), owes up to $22.0 million in milestones per program per product, and is linked to Fairmount, an investor with three seats on Damora's board. The company classifies all of these as related parties. None of this is hidden, but anyone holding the shares should know that the key supplier, a large shareholder and part of the board are connected.
• Another $103.1 million of stock compensation still to come for unvested options, spread over about 3.6 years — on top of an ATM program with about $120 million of its $150.0 million capacity left.
• No one-offs this quarter. There was no acquired in-process R&D charge in Q2 (licensing DMR-002 on April 28 didn't create one), and the tax line is small ($0.3 million). The quarter is clean apart from the normal non-cash items above.
• No going-concern doubt. The filing says it will need more capital eventually, but does not express doubt about its ability to keep operating over the next year.

Takeaway: This quarter's loss doesn't decide anything for Damora. What does is whether DMR-001 proves better than a competing antibody already in trials. The company has paid for the chance to find out: $540.5 million, with a runway past the first proof-of-concept data in mid-2027. Holders have paid for that funding with a share count up nearly 40-fold in six months and a yearly warrant grant to a related party.

Outlook

Management's milestones, from the filing: more regulatory submissions for DMR-001 in the second half of 2026 to take the Phase 1/1b trial global; the first DMR-002 regulatory submission, also in the second half of 2026; two DMR-001 proof-of-concept readouts starting mid-2027, with expansion groups of ET and MF patients next year; DMR-003's first submission in 2027; and Phase 3 for DMR-001 as early as mid-2028 if the data support it.

Our read: expect quarterly R&D to keep rising from $25.5 million as manufacturing continues and trial sites open in more countries, with interest income ($4.1 million a quarter) slowly falling as cash is spent. In the next filings, watch three things: whether the DMR-002 submission happens on time, whether cash burn grows in line with the 2029 runway or faster, and how much more is sold through the ATM program. Before mid-2027, competitor INCA033989's clinical data are likely to move the stock more than anything in Damora's own reports.

This is Damora's first report on the site; the next filing, the Q3 2026 10-Q, would normally arrive in early-to-mid November 2026.