Milestone Pharmaceuticals Inc. (NASDAQ: MIST) reported a widened net loss for the second quarter ended June 30, 2026, as costs associated with the commercial launch of its lead product CARDAMYST accelerated. The company recorded a net loss of $28.6 million ($0.21 per share), compared to a net loss of $13.0 million ($0.20 per share) in the corresponding period of 2025.

The deterioration in profitability was primarily driven by a surge in selling, general and administrative (SG&A) expenses, which rose to $22.6 million from $8.9 million in the prior year quarter. This increase reflects additional personnel and professional costs tied to the launch of CARDAMYST, which began in mid-February 2026. Conversely, research and development (R&D) expenses declined slightly to $3.5 million from $3.7 million year-over-year, attributed to lower outside service costs.

Commercial Launch Metrics

Despite the early stage of commercialization, Milestone reported initial product revenues of $0.6 million for the quarter, with no comparable revenue in the prior year period. For the six months ended June 30, 2026, total product revenues were $0.8 million.

Key commercial milestones for CARDAMYST include:

• More than 800 unique prescribers initiated patients on CARDAMYST through June 30, up from approximately 200 at the end of Q1.
• Over 1,500 scripts were filled for more than 1,300 patients, compared to approximately 300 scripts for 300 patients at the end of Q1.
• Insurance coverage for commercially insured lives increased significantly to approximately 50%, following recent formulary approvals from UnitedHealthcare and other prominent insurers.

Balance Sheet and Liquidity

As of June 30, 2026, Milestone held $170.6 million in cash, cash equivalents, and short-term investments, an increase from $106.0 million at December 31, 2025. The company stated that this liquidity position is sufficient to cover operating expenses and capital expenditures into the second half of 2027.

Total current liabilities rose to $22.18 million from $13.98 million at year-end 2025, while total assets increased to $181.6 million from $113.6 million. A notable addition to the balance sheet was a long-term royalty financing obligation of $81.76 million, which was not present at the end of 2025.

What the Numbers Show

The financial data reveals a significant divergence between revenue generation and cost structure during the initial launch phase. While product revenues reached $0.6 million in Q2 2026, SG&A expenses alone consumed $22.6 million, indicating that operational costs currently exceed product sales by a wide margin. Additionally, interest expense rose sharply to $4.7 million in the quarter from $0.95 million in the prior year period, reflecting the impact of new debt instruments such as the senior secured convertible notes and royalty financing obligations on the company's capital structure.

Clinical and Regulatory Updates

Beyond financial results, Milestone provided updates on its pipeline and regulatory progress:

• The Phase 3 ReVeRA-301 trial for etripamil in atrial fibrillation with rapid ventricular rate (AFib-RVR) has activated clinical sites and plans to enroll the first patient in the second half of 2026.
• Regulatory review for the marketing authorization application in Europe remains on track for a European Medicines Agency decision in the first half of 2027.
• The New Drug Application for China is under review by the National Medical Products Administration, with partner Everest Medicines handling engagement.

Milestone Pharmaceuticals Inc. granted 288,000 options to purchase common shares to six new employees as a material inducement to their employment. The options were awarded under the company's 2021 Inducement Plan, which was previously approved by the Compensation Committee and the Board of Directors. The grants were made in accordance with Nasdaq Listing Rule 5635(c)(4), which allows equity awards to individuals not previously employed by the company or following a bona fide period of non-employment.

The options have a grant date of July 1, 2026, and an exercise price of $1.32 per share, equal to the closing price of Milestone's common shares on the grant date. The shares subject to the options will vest over four years, with 25% vesting on the one-year anniversary of the vesting commencement date. The remaining shares will vest in 36 successive equal monthly installments thereafter.

The awards are subject to the holder's continuous service through each vesting date and to the terms of the plan and its standard grant agreements. The plan is used exclusively for grants to new employees as an inducement to enter into employment with Milestone.

Milestone Pharmaceuticals Inc. is an emerging commercial-stage biopharmaceutical company advancing innovative cardiovascular medicines. Its lead product is CARDAMYST™ (etripamil) nasal spray, a novel calcium channel blocker approved by the FDA for the conversion of acute symptomatic episodes of paroxysmal supraventricular tachycardia (PSVT) to sinus rhythm in adults. Etripamil is also in development for the control of symptomatic episodic attacks associated with AFib-RVR.

Key Details of the Option Grants