Ondine Biomedical Reports 2025 Full Year Results and Phase 3 Trial Progress

Ondine Biomedical full-year results: a classic biotech setup with one huge near-term catalyst

Ondine Biomedical’s 2025 results read like a company moving into the business end of the story. Revenue is growing, real-world hospital adoption is widening, and the big U.S. Phase 3 trial has now finished enrolment. For retail investors, that last point is the headline – because the next set of trial data could have far more impact on the share price than this year’s sales figure.

The company is still firmly in investment mode. It made just $2.6 million of revenue in 2025, but posted a $30 million operating loss as it poured money into its LANTERN Phase 3 pivotal study. A pivotal study is the late-stage trial designed to support regulatory approval, so this is exactly where a biotech like Ondine is supposed to be spending.

Key 2025 numbers	2025	2024
Revenue	$2.6 million	$2.0 million
Gross margin	61%	64%
Operating loss	$30 million	$19.4 million
Research and development spend	$21.2 million	$9.2 million
Cash at year end	$10.6 million	$9.9 million
Net cash used in operations	$23.8 million	$15.5 million
Hospitals and clinics using or piloting Steriwave	37	29
LANTERN Phase 3 patient enrolment	5,188 patients	Not applicable

Ondine Biomedical Phase 3 LANTERN trial progress is the real value driver

The most important update here is that Ondine completed patient enrolment in the LANTERN Phase 3 trial across 14 HCA Healthcare hospitals in the U.S. and four Canadian hospitals. That matters because the company says top-line results are expected by the end of Spring 2026, subject to receipt of final data.

This trial enrolled 5,188 patients, making it by far the biggest clinical programme in the company’s history. If the readout is positive, it could support a planned New Drug Application, or NDA, to the U.S. Food and Drug Administration. In plain English, that is the path towards selling Steriwave in the world’s biggest healthcare market.

That is the upside case. The flip side is obvious too – if the data disappoint, much of the current investment case gets weaker very quickly. Ondine itself makes clear that the product is not approved, cleared, or commercially available for sale in the U.S. and remains investigational there.

My take: this is a high-risk, high-reward setup. For now, investors are being asked to back the commercial opportunity before the key U.S. approval-driving data have landed.

Steriwave hospital adoption is growing, but it is still early-stage commercial traction

On the commercial side, there is real progress. Ondine increased deployments, pilot programmes and clinical collaborations by 28% year-on-year to 37 hospitals and surgical clinics. That gives the story more credibility because it shows hospitals are willing to test and, in some cases, standardise the technology.

Canada looks the strongest market so far. The University of Ottawa Heart Institute adopted Steriwave as standard of care for all cardiac surgeries, while Interior Health standardised it for hip and knee replacement surgeries. Those are meaningful wins because they go beyond one-off evaluation projects.

In the UK, the company started a pilot at Royal Papworth Hospital NHS Foundation Trust and continues to use NHS Supply Chain access to support procurement across England and Wales. In Europe it added pilots and collaborations in Switzerland, Germany and Spain, while Mexico and Australia also joined the list of early international opportunities.

That all sounds encouraging, but investors should keep their feet on the ground. A pilot is not the same thing as broad rollout, and 37 sites is still small in the context of global hospital markets. Ondine is building footholds rather than showing full-scale commercial penetration.

Real-world infection reduction data looks strong, but investors should treat it with some caution

One of the more interesting parts of the update is the growing body of real-world evidence behind Steriwave. At Mid Yorkshire Teaching NHS Trust, Steriwave was associated with a 71% reduction in knee and hip arthroplasty surgical infections compared with another topical nasal antimicrobial agent. At Sherbrooke University Hospital in Quebec, it was associated with a 78% reduction in spine surgery surgical site infections and a 30% reduction in average hospital length of stay.

There was also a feasibility study in intensive care at Royal Columbian Hospital showing significant reduction in nasal pathogen burden, with a p-value of less than 0.01, alongside a 39.5% reduction in observed pneumonia rates. The study was published in Critical Care, which adds some weight.

But the company also does the right thing by flagging the limitation: these are observational findings and may be influenced by multiple factors. That means they are helpful and promising, but not the same thing as a definitive randomised trial result.

The health economics angle is also appealing. A York Health Economics Consortium study found potential NHS savings of £1.49 to £2.38 for every £1 spent on Steriwave across major surgeries. If that stands up in wider practice, it gives hospital buyers a financial reason to listen, not just a clinical one.

Ondine Biomedical financial results: revenue rose 29%, but losses and cash burn climbed hard

Financially, this was a year of heavier spending rather than operating leverage. Revenue rose 29% to $2.6 million, which is good, but it remains tiny compared with the cost base. The operating loss widened sharply to $30 million from $19.4 million.

The main reason is clear enough: research and development expense jumped to $21.2 million from $9.2 million, with $16.6 million of that tied directly to the LANTERN Phase 3 trial. General and administrative costs actually fell 12% to $8.7 million, while marketing and sales stayed flat at $1.1 million. So this is not a story of overheads running wild – it is a story of a business funding one huge clinical bet.

Cash at 31 December 2025 was $10.6 million, up slightly from $9.9 million, but net cash used in operating activities reached $23.8 million. That tells you the company is still dependent on fundraising, and sure enough it raised around $24.2 million during the year, then added a further £5.0 million gross post period-end, equal to $9.2 million gross and $8.6 million in net cash.

That support from shareholders is positive because it reduces immediate funding pressure. Still, the big negative is impossible to miss – Ondine is not self-funding, and retail investors should expect future progress to remain linked to access to capital as well as trial outcomes.

What matters next for Ondine Biomedical shares in 2026

There are three things to watch now, and the first one dwarfs the other two.

• LANTERN top-line data – this is the key catalyst and likely the main driver of sentiment.
• FDA submission progress – management says it is preparing the remaining pieces of its planned NDA.
• Commercial conversion – investors need to see more pilots turn into repeat use and standard-of-care adoption.

Overall, this RNS is positive on momentum but still speculative on valuation support. Ondine has done the hard part operationally by finishing enrolment, expanding hospital usage and raising more cash. What it has not yet done is prove the U.S. case with final Phase 3 data or show anything close to meaningful revenue scale.

So the bull case is straightforward: if LANTERN reads out well, Steriwave could move from interesting niche product to serious regulatory and commercial opportunity. The bear case is just as clear: if the data are weak, the losses, dilution risk and early-stage sales profile will come under much harsher scrutiny.

For now, Ondine looks like a company approaching a proper make-or-break moment. That is exciting, but it also means this is one for investors who understand biotech risk rather than those hunting for near-term earnings certainty.

Where to read the Ondine Biomedical annual report and investor materials

Investors can read the full annual report on the company’s investor page here: 2025 Annual Report and Accounts.

Ondine has also said the presentation recording and slides will be made available on its website here: Ondine Biomedical investor reports and documentation.