Pulmatrix Navigates Strategic Pivot Amid Merger Delays

Pulmatrix finds itself at a strategic crossroads, managing a prolonged merger process while actively divesting its core inhalation therapy business. The recent removal of exclusivity clauses has broadened the company's options, but a key question remains: is its remaining capital sufficient to navigate this period of transition successfully?

A critical factor in Pulmatrix's current strategy is its available capital. The company closed the third quarter of 2025 with a cash position of $4.8 million. Management estimates these funds are adequate to support operations through the end of 2026. This financial buffer is designed to allow the company to execute its strategic shifts without the immediate pressure to secure additional financing.

Industry conferences in May could provide further context for the sector. The RDD 2026 in Phoenix and the ATS International Conference in Orlando will showcase developments in respiratory therapy. While Pulmatrix has not announced its own presentations, trends and competitive data emerging from these events may influence the valuation of the assets it has put up for sale.

Core Inhalation Business on the Block

Concurrently with the merger discussions, Pulmatrix is advancing the sale of its legacy inhalation assets. This divestment includes its proprietary iSPERSE™ technology platform and three clinical programs. Among these, the migraine treatment PUR3100 is considered a valuable component, as it is prepared to enter Phase 2 clinical trials.

Should investors sell immediately? Or is it worth buying Pulmatrix?

Progress is also noted with partner Cipla. Their jointly developed antifungal, PUR1900, has completed a Phase 2 study in India. Regulatory authorities there have already granted approval to proceed with a subsequent Phase 3 trial. This strategic divestiture aims to clear the path for a new technological focus on targeted protein degradation, which would become the priority following a successful merger.

Merger with Cullgen Faces Regulatory Hurdles

The proposed combination with Cullgen, announced in November 2024, remains the central variable for Pulmatrix's future. Although shareholders gave their approval in June of last year, the transaction's completion is still pending necessary regulatory clearances. Key approvals still awaited include those from the Chinese Securities Regulatory Commission (CSRC) and a listing authorization from Nasdaq.

In December, both companies responded to the delays by mutually terminating their exclusivity agreement. This move permits each party to explore alternative transactions while continuing to work toward their merger. Market observers interpret this step as a precautionary measure to maintain strategic flexibility in the face of extended regulatory timelines.