TORRANCE, Calif. — Emmaus Life Sciences, Inc. (OTCQB: EMMA), a commercial-stage biopharmaceutical company focused on treatments for sickle cell disease, has released its financial results for the fiscal year ending December 31, 2024. The company reported a substantial year-over-year decline in revenue largely due to inventory shortages that disrupted sales for much of the year.
According to the company’s announcement, net revenues for 2024 fell nearly 44% to $16.7 million, down from $29.6 million in 2023. The downturn was primarily driven by a supply shortfall that began in early 2024 and continued into the third quarter. While sales improved in the latter half of the year after inventory levels were restored, the rebound was not sufficient to offset earlier losses.
“We experienced a decline of nearly 44% in net revenues in 2024… Although sales rebounded once the shortage was resolved, they could not make up for the lost sales earlier in the year,” said Willis Lee, Chairman and CEO of Emmaus. He also noted that despite the revenue drop, the company managed to reduce net operating expenses by nearly 30%, softening the financial blow.
Total operating expenses were down to $17.3 million in 2024, a significant decrease from $24.7 million in the prior year. The reduction was attributed to cuts in general and administrative costs, selling expenses, and the suspension of most R&D activities in late 2023.
Still, the company reported a loss from operations of $1.9 million in 2024, a sharp reversal from the $3.5 million in operating income reported in 2023. The overall net loss for the year widened to $6.5 million, or $0.10 per share, compared to a $3.7 million loss, or $0.07 per share, in 2023.
Emmaus also reported an improvement in its “other expense” line item, which shrank to $4.5 million in 2024 from $7.3 million the previous year. The improvement was driven by gains from restructured debt and reduced interest and foreign exchange losses, though partially offset by changes in derivative liabilities.
Looking ahead, the company expressed cautious optimism. “We believe we have sufficient inventory on hand for the balance of 2025, and currently expect net revenues for the year to reach or exceed 2024 levels absent unexpected developments,” Lee stated.
As of December 31, 2024, Emmaus held $1.4 million in cash and cash equivalents, down from $2.5 million a year prior, raising ongoing questions about the company’s liquidity as it navigates a path back to growth.
Despite the challenges of 2024, the company remains committed to its core mission in sickle cell treatment and hopes to stabilize operations in 2025, provided supply chains remain intact.
