Breaking Down Calithera Biosciences, Inc. (CALA) Financial Health: Key Insights for Investors

If you are still holding Calithera Biosciences, Inc. (CALA) shares, you need to be a realist about the company's financial health, because the story is defintely not about a turnaround; it is about an orderly wind-down. The critical data point is the company's complete liquidation and dissolution, announced back in 2023, which is why the stock is trading on the OTC Expert Market at a negligible price, recently around $0.0010 per share. This is not a functioning biotech firm anymore, it's a shell. The latest quarterly net change in cash was a burn of -$8.62 million, and the net loss for that same period was -$6.94 million, reflecting the cost of winding down operations, not funding a pipeline. Your focus should shift entirely from clinical milestones to the residual value of assets and the tiny market capitalization of just over $4.87 thousand, which is a clear signal of its near-zero operational value.

Revenue Analysis

You need to understand that for Calithera Biosciences, Inc. (CALA), a traditional revenue analysis is no longer applicable. The company initiated an orderly wind-down and plan of complete liquidation and dissolution in January 2023, and as of November 2025, its primary focus is on Chapter 11 bankruptcy proceedings and asset liquidation. The operational revenue streams you would normally track-product sales or collaboration milestones-have effectively ceased.

The core takeaway for 2025 is simple: operational revenue is near zero. This is a defintely critical shift from its historical model, where revenue was tied to strategic partnerships.

Breakdown of 2025 Cash Inflow (Not Operating Revenue)

For the 2025 fiscal year, the company's financial activity is centered on winding down, not generating revenue from its biopharmaceutical pipeline. The 'revenue' you see on a liquidation-basis income statement is not sales, but rather a final accounting of assets and liabilities. As of February 2025, the company's efforts are primarily directed toward legal and financial restructuring, including actively pursuing asset liquidation to satisfy creditor claims.

The company's prior revenue model was heavily skewed toward collaboration revenue-payments from major pharmaceutical partners like Pfizer and Incyte for the development of clinical-stage compounds such as INCB001158 and CB-280. This collaboration revenue is now gone. The current contribution to overall cash inflow is:

• Asset Sales/Liquidation: Nearly 100% of non-financing cash inflow.
• Operational Revenue: Essentially $0 from drug candidates or services.

Year-over-Year Revenue Decline

The year-over-year revenue growth rate is a catastrophic decline. Since the company is in liquidation, its operational revenue has dropped by nearly 100% from the last period where it reported significant collaboration revenue. This isn't a business cycle; it's a permanent cessation of the core business model. The market capitalization, a quick measure of investor perception, reflects this diminished value, standing at a mere $2,923 as of February 2025.

Here's the quick math: when your business is a shell company focused on settling debts, your revenue growth from the prior year's operations is a total write-off. The analysis of revenue segments is now an analysis of residual asset value.

What this estimate hides is that the liquidation process itself is the only remaining 'segment' of financial activity. The liquidation preference of the Series A convertible preferred stock meant that even if all assets were converted to cash, no liquidating distributions were anticipated for common stockholders. This is the final financial reality.

If you're looking for more context on the investor landscape surrounding this situation, you should be Exploring Calithera Biosciences, Inc. (CALA) Investor Profile: Who's Buying and Why?

Profitability Metrics

You need a clear picture of Calithera Biosciences, Inc. (CALA)'s financial engine, but for a clinical-stage biotech, profitability looks very different than for a mature company. Your direct takeaway is this: CALA's profitability is deeply negative, which is typical for its phase, but the magnitude of its operating loss demands attention. The company's estimated net loss for the 2025 fiscal year is projected to be $10.48 million.

Gross Profit and Operational Efficiency

For a company like Calithera Biosciences, Inc., which is primarily focused on drug development and not yet selling a commercial product, the concept of a gross profit margin is almost moot. Gross profit is Revenue minus Cost of Goods Sold (COGS). Since there are minimal product sales, COGS is often zero or negligible, meaning the gross profit is near zero, and the gross margin is effectively non-existent. This is simply the cost of doing business in a pre-commercial biotech.

The real story lies in the operating profit, which is where Research and Development (R&D) and Selling, General, and Administrative (SG&A) costs hit. This is where we gauge operational efficiency. For the twelve months ending in November 2025, Calithera Biosciences, Inc.'s Trailing Twelve Months (TTM) Operating Margin sits at a staggering -1,180.38%. Here's the quick math: a margin this deeply negative means the company is spending over twelve times its revenue on operating expenses. This isn't a sign of poor cost management, defintely, but rather the massive, necessary investment into its drug pipeline, which you can read more about in their Mission Statement, Vision, & Core Values of Calithera Biosciences, Inc. (CALA).

Net Profit and Industry Comparison

The Net Profit Margin reflects the total bottom line after all non-operating expenses, like interest income/expense, are factored in. Calithera Biosciences, Inc.'s estimated Net Income for the 2025 fiscal year is a loss of $10.48 million. This loss is actually a 59.85% increase in the absolute loss amount compared to the estimated net loss of $6.56 million in 2024. This trend-a widening loss-is not ideal, but still within the risk profile of a development company burning cash to advance its clinical trials.

To be fair, the entire industry operates this way. When you compare Calithera Biosciences, Inc.'s profitability ratios with the broader Biotechnology industry averages as of November 2025, you see this model is common:

• Average Biotechnology Gross Profit Margin: 86.7%
• Average Biotechnology Net Profit Margin: -169.5%

The industry's high average Gross Profit Margin (86.7%) is skewed by companies with commercialized, high-margin drugs. The Net Profit Margin of -169.5% shows that the average biotech, like Calithera Biosciences, Inc., is still heavily unprofitable due to R&D costs. Calithera Biosciences, Inc.'s deeply negative Operating Margin is the key metric to watch, as it shows the intensity of their cash burn relative to their minimal revenue base.

The action item here is to track the quarterly R&D spend against clinical milestones. If the cash burn (reflected in the negative operating margin) doesn't translate into positive trial data, that's when you have a problem.

Debt vs. Equity Structure

The question of how Calithera Biosciences, Inc. (CALA) finances its growth is now a historical one. The direct takeaway is that the company's financial structure is defined by its plan of complete liquidation and dissolution, which was announced in January 2023. This means its current debt-to-equity ratio is nominal, reflecting a wind-down process, not an operating business model.

For a clinical-stage biotechnology company, the balance between debt and equity is defintely crucial. Before the liquidation, Calithera Biosciences, Inc. had a very low reliance on debt. The most recent balance sheet data from the end of fiscal year 2022 showed Total Liabilities-which includes all short-term and long-term debt-at only $8.28 million, compared to Total Equity of $20.4 million (all figures in USD millions).

Here's the quick math: The Debt-to-Equity (D/E) ratio, which measures the proportion of a company's assets financed by debt versus shareholder equity, is extremely low. For the period ending in November 2025, the ratio is reported around 0.08. This is significantly lower than the average D/E ratio for the Biotechnology industry, which sits around 0.17. A low ratio is typically a sign of financial strength, but in this case, it signals the near-total cessation of operations.

The company has essentially moved to an all-equity structure, but one focused on winding down and distributing remaining assets, not funding a pipeline. You won't find any recent debt issuances or credit ratings because the company is in a controlled wind-down. The last major financing activity was actually a repurchase of equity: in April 2023, the company paid $4.0 million in cash to repurchase all outstanding shares of its Series A convertible preferred stock. This was a key step in simplifying the capital structure ahead of dissolution.

The balance of funding shifted entirely from R&D and clinical trials to managing remaining liabilities with existing capital resources and proceeds from asset sales. This is a critical distinction for investors: you are looking at a final balance sheet, not a growth-oriented one. For more context on the original business goals, you can review the Mission Statement, Vision, & Core Values of Calithera Biosciences, Inc. (CALA).

To summarize the final capital structure:

• Short-Term Debt: Nominal, primarily consisting of operational liabilities.
• Long-Term Debt: Essentially zero.
• Debt-to-Equity Ratio (Nov 2025 Context): 0.08, far below the industry average of 0.17.
• Financing Activity: None, as the company is in liquidation.

What this estimate hides is the fact that the low debt level is not a strategic choice for a going concern, but a necessary condition for dissolution. Your action here is to assess the value of the remaining assets against the final liabilities and liquidation preference.

Liquidity and Solvency

The core takeaway for Calithera Biosciences, Inc. (CALA) is that traditional liquidity metrics are now a measure of its Mission Statement, Vision, & Core Values of Calithera Biosciences, Inc. (CALA). liquidation, not a sign of operational health. The company is undergoing a complete dissolution, which is the single most important financial factor to understand.

As of the most recent data, Calithera Biosciences' liquidity ratios appear deceptively strong, but this is an artifact of the dissolution process, not a healthy business. The Current Ratio stands at approximately 3.60, and the Quick Ratio is close behind at 3.44. Here's the quick math: a ratio over 1.0 generally means current assets cover current liabilities, but in this case, it simply means the company has more than enough liquid assets to pay its immediate debts during the wind-down.

To be fair, these high ratios are a strength in the context of a Chapter 11 bankruptcy or dissolution, as they signal a strong ability to satisfy creditor claims. The company's net cash position was reported at approximately $23.79 million, with cash and equivalents around $25.45 million, which provides the necessary cushion for winding down operations.

Working Capital and Cash Flow Trends

Working capital-current assets minus current liabilities-shows a positive position, driven primarily by the cash on hand. However, the trend in operational cash flow is the real signal of the underlying business failure. For the trailing twelve months, the company's Cash Flow From Operating Activities was a significant negative at roughly -$43.61 million. This massive cash burn is why the company entered dissolution in the first place, despite the high ratios.

The cash flow statement paints a clear picture of a company that could not sustain its operations:

• Operating Cash Flow: Consistently negative, at -$43.61 million (TTM). This is the burn rate that forced the dissolution.
• Investing Cash Flow: Likely minimal or positive, reflecting the sale of assets or intellectual property (IP) during the liquidation.
• Financing Cash Flow: Trends here would show the final transactions related to debt retirement and the distribution of remaining funds to shareholders, which is the final step of dissolution.

The Ultimate Liquidity Concern

The primary concern isn't a lack of short-term liquidity; it's the complete and irreversible lack of long-term solvency. Calithera Biosciences has completed its liquidation and dissolution, meaning the stock is no longer tied to an ongoing business. Any trading activity you see now is purely speculative and untethered to underlying business value. The high current ratio is defintely not a buy signal; it's a liquidation metric.

Action for Investors: Recognize that Calithera Biosciences is a dissolved entity. Any investment decision should be based on the final distribution of remaining assets to shareholders, not on traditional financial health analysis.

Valuation Analysis

You're asking if Calithera Biosciences, Inc. (CALA) is overvalued or undervalued, but honestly, that traditional framework doesn't apply here. The critical near-term trend you need to map is the company's completed liquidation and dissolution, which has left no operational activities as of November 2025. This means the stock price is no longer tied to future earnings or drug pipeline success; it's a reflection of residual value, often driven by extremely low-volume, speculative trading.

The stock is trading at an ultra-low price point, around $0.0010 per share as of November 2025, with a tiny market capitalization of approximately $4.87 thousand. This is a micro-cap situation, and the volatility is extreme. The stock's 52-week range has been between $0.0001 and $0.0100, and while it saw a 400.00% spike in the past month, these movements are not based on business fundamentals. It's defintely a high-risk scenario.

Why Traditional Ratios Are Broken for CALA

For a clinical-stage biopharma company, especially one in dissolution, standard valuation metrics like Price-to-Earnings (P/E) and Enterprise Value-to-EBITDA (EV/EBITDA) are essentially meaningless. Here's the quick math on why:

• Price-to-Earnings (P/E): This ratio is non-applicable because the company is unprofitable, reporting an Earnings Per Share (EPS) of -$13.23 as of November 2025. You can't divide by a negative number to get a useful ratio.
• EV/EBITDA: This is also non-applicable, as Calithera Biosciences, Inc. is pre-revenue with insufficient data to calculate a reliable figure.
• Price-to-Book (P/B): The Book Value is recorded as a negative -US$1.95 million, which makes a P/B calculation unreliable for determining fair value. The company has negative net assets.

Stock Price Trends and Analyst Consensus

Looking at the past year, the stock price has decreased by 85.71%, which is a clear, long-term downtrend. This performance is consistent with a company that has faced significant clinical and financial challenges, leading to its current dissolution status. You should view any short-term percentage gains with extreme skepticism; they are a function of low liquidity and speculative trading, not a change in the company's core value. Mission Statement, Vision, & Core Values of Calithera Biosciences, Inc. (CALA).

Analyst consensus is difficult to pin down because many firms have stopped coverage due to the lack of operational data. While one source noted an upgrade to a 'Buy' candidate on November 18, 2025, it's crucial to understand this is often based on technical trading signals for a micro-cap stock, not a fundamental belief in the company's long-term business model. Professional equity research consistently flags Calithera Biosciences, Inc. as high risk. What this estimate hides is the liquidation process itself-the only real value is what remains after all debts are settled.

Since the company is in dissolution, the question isn't about growth or profitability; it's about the final distribution of assets. There is no dividend yield or payout ratio to analyze, as the company has distributed 0 USD as dividends. Your only real action is to assess the potential for a final, small liquidation payout versus the risk of the stock becoming completely worthless.

Risk Factors

You're looking at Calithera Biosciences, Inc. (CALA) and need to understand the risks. Honestly, the single, overriding risk is that this company is not a going concern; it is in the process of a complete liquidation and dissolution, which it announced its intention to commence in January 2023. This process fundamentally changes the investment thesis from a growth opportunity to a liquidation event.

As of February 2025, the company is actively navigating Chapter 11 bankruptcy proceedings, with the primary focus being asset liquidation to satisfy creditor claims. Your investment risk is now tied to the final net proceeds after all liabilities are settled, which is why the stock price is trading near zero, with a market capitalization of just $4.87 thousand as of November 2025. That's a tiny market cap.

The Ultimate Financial Risk: Liquidation

The most immediate and severe financial risk is the uncertainty surrounding any liquidating distribution to stockholders. While the company's Plan of Dissolution aims to wind down operations, the actual amount, if any, that common stockholders might receive is highly speculative. The process is slow and complex, and the cancellation of a special meeting in June 2023 due to a lack of quorum highlights the administrative challenges of the wind-down.

The financial metrics for the 2025 fiscal year reflect a deeply distressed state. For instance, the company's estimated net income for 2025 is a loss of -$10.48 million. In the latest quarter (November 2025), the net change in cash was a loss of -$8.62 million, meaning cash is defintely leaving the balance sheet.

• Operational Risk: There is minimal operational activity since the focus is on asset sale, not drug development.
• Regulatory Risk: Clinical programs, which are the lifeblood of a biotech, have been discontinued, eliminating the typical regulatory (FDA) risk in favor of a final closure risk.
• Market Risk: Extreme stock price volatility is driven by low liquidity and not by underlying business changes, making the stock untethered to fundamentals.

Financial Distress and Dilution Risks

Even though the company reported total assets of $28.68 million and total liabilities of $7.39 million in the latest quarter (November 2025), the liquidation process introduces significant, often unknown, contingencies and liabilities, including potential tax claims. What this estimate hides is the cost of the dissolution itself, which eats into the final reserve.

The negative return on equity (ROE) of -114.14% on a trailing twelve months (TTM) basis further illustrates the destruction of shareholder value over time. The high current ratio of 3.60, while historically a sign of health, offers little comfort now, as it is overshadowed by the bankruptcy filing. The only clear action here is to understand the finality of the situation.

Mitigation Strategy: The Dissolution Plan

The company's only mitigation strategy is the orderly wind-down under the Plan of Dissolution. Management's goal is to use existing capital resources and net proceeds from asset sales to meet remaining liabilities and obligations, with the hope of a final liquidating distribution. The value of the remaining assets, which includes drug candidates and intellectual property, is being salvaged, but the market value of these distressed assets is inherently low. You can track the progress of this final chapter in the company's story by reviewing the latest filings. To explore the broader context of this situation, you can read the full post: Breaking Down Calithera Biosciences, Inc. (CALA) Financial Health: Key Insights for Investors.

Growth Opportunities

You need to know the plain truth: Calithera Biosciences, Inc. (CALA) has no operational growth prospects. The company is in the final stages of a complete liquidation and dissolution, a process approved by the Board in January 2023. This means the only remaining financial event for shareholders is the potential for a final liquidating distribution, not revenue growth from drug development.

Forget the old biotech playbook. The stock is currently trading on the OTC Expert Market with virtually no activity, and the share price is near $0.00 as of November 2025. Any analysis of a drug pipeline or market expansion is now a historical exercise.

The Real 2025 Financial Picture: Liquidation, Not Revenue

Before the final wind-down, some legacy analyst models projected a 2025 fiscal year average revenue of around $62.00M and a net loss of approximately $-10.53M. Honestly, those numbers are defintely irrelevant now. They reflect a clinical-stage company that no longer exists in that operational form.

Here's the quick math for the current reality: The operational revenue from drug sales for the Calithera Biosciences, Inc. entity in 2025 is $0.00. The focus shifted entirely to maximizing the value of remaining assets for creditors and shareholders through the dissolution plan. What this estimate hides is the finality of the process; the company is done with drug development.

• Current Operational Revenue (2025): $0.00 (from core business)
• Legacy Net Income Estimate (2025): $-10.53M (pre-dissolution model)
• Current Market Capitalization: Approximately $4.87K

Historical Assets and Strategic Wind-Down

The company's sole strategic initiative is the orderly wind-down. This means the value you might see is tied to the successful monetization of its intellectual property (IP) and physical assets, not product innovation. The former pipeline assets, like the dual TORC 1/2 inhibitor sapanisertib and the SYK inhibitor mivavotinib, which were acquired from Takeda Pharmaceutical Company Limited, are now part of the liquidation process.

The partnerships that once drove the company, including collaborations with Incyte Corporation for INCB001158 and a clinical trial collaboration with Pfizer, are effectively terminated in terms of future operational growth. The competitive advantage of its small-molecule approach to tumor metabolism is now an asset to be sold, not a platform for future market share gains.

For a detailed breakdown of who held shares before this final stage, you can read more here: Exploring Calithera Biosciences, Inc. (CALA) Investor Profile: Who's Buying and Why?

The table below summarizes the shift from a growth-focused biotech to a liquidating entity.