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Palisade Bio Inc. (NASDAQ: PALI) is a clinical-stage biopharmaceutical company headquartered in Carlsbad, California. The firm focuses on the development of microbiota-activated prodrug therapies targeting immune, inflammatory, and fibrotic diseases of the gastrointestinal tract. As of October 6, 2025, the stock closed at $2.19, reflecting a 36.94% increase on a trading volume of approximately 20.9 million shares.
Corporate Structure
Founded in 2005, Palisade Bio employs between 11 and 50 professionals across research, clinical development, and corporate functions. The executive leadership team includes J.D. Finley (Chief Executive Officer), Mitchell L. Jones, MD, PhD (Chief Medical Officer), and Ryker Willie (Senior Vice President, Finance and Corporate Controller). The company is supported by a cap table that includes various institutional and private investors.
Biopharmaceuticals by little plant
Recent Developments and News
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Prospectus Filing (October 2, 2025)
Palisade Bio filed a prospectus under SEC Rule 424(b)(4) to offer 87,526,279 shares of common stock and 83,914,280 pre-funded warrants. The public offering price was set at $0.70 per share and $0.6999 per warrant, aiming to raise approximately $120 million before expenses. Net proceeds are expected to total $111.6 million after underwriting commissions. -
Offering Closing (October 1, 2025)
The company announced the closing of its underwritten public offering, including the full exercise of the underwriters’ over-allotment option, resulting in gross proceeds of approximately $138 million. Proceeds will support the Phase 2 clinical development of PALI-2108 for ulcerative colitis. -
Preclinical Data Presentation (February 10, 2025)
Palisade Bio presented a poster at the Crohn’s & Colitis Congress demonstrating that PALI-2108 reduced colitis symptoms in a DSS mouse model without adverse central nervous system effects. Pharmacokinetic modeling suggested twice-daily induction dosing and once-daily maintenance in humans. -
Pipeline Milestones
• PALI-2108 (PDE4 prodrug) for ulcerative colitis completed Phase 1a data reporting and is on track to initiate Phase 1b/2a studies in H1 2026.
• The Phase 1b cohort in fibrostenotic Crohn’s disease remains ongoing, with topline data expected in Q1 2026 and Phase 2a planned for H2 2026.
Financial and Strategic Analysis
As of now, Palisade Bio holds a market capitalization of approximately $15 million, with a levered free cash flow of –$6.06 million and a reported net loss of $11.85 million over the trailing twelve months. The balance sheet shows $5.43 million in cash with a debt-to-equity ratio of 12.9%. The company does not currently generate revenue, and earnings per share for the trailing twelve months is –$3.64. Its Beta is 1.47, suggesting higher volatility than the S&P 500.
The recent equity financing aims to extend the operational runway through several clinical milestones, particularly the completion of Phase 1b/2a studies. By addressing unmet needs in inflammatory bowel disease, Palisade Bio seeks to differentiate itself based on colon-specific activation and safety profile compared to traditional systemic immunosuppressants.
Market Position and Industry Context
Palisade Bio operates within the gastrointestinal therapeutics segment, corresponding to a global ulcerative colitis market valued in the multi-billion-dollar range. Existing treatments include systemic immunosuppressants and biologics, which have limitations such as infection risk and varying remission rates. Precision-activated prodrugs like PALI-2108 are designed to concentrate activity within the intestinal lumen, potentially minimizing systemic exposure.
Analyst estimates listed on Yahoo Finance suggest a one-year target price of $8.00. Average daily trading volume is reported at 5.7 million shares. While Palisade Bio is categorized as a micro-cap company with an enterprise value near $10.8 million, its planned clinical milestones and recent capital raise position it among small-cap biotech companies focused on developing gastrointestinal therapies.
tl;dr
Palisade Bio’s share price closed at $2.19 on October 6, 2025, following a $138 million underwritten offering. The company filed a Form 424B4 on October 2 to raise approximately $120 million before expenses, with net proceeds designated for Phase 2 development of PALI-2108 for ulcerative colitis. Preclinical data presented in February 2025 supported colon-specific activation without adverse effects on the central nervous system. Enrollment for Phase 1b/2a is expected to begin in H1 2026 for ulcerative colitis, with topline data for fibrostenotic Crohn’s disease anticipated in Q1 2026.
