On November 13, 2026 Allarity Therapeutics, Inc. ("Allarity" or the "Company") (NASDAQ: ALLR), a Phase 2 clinical-stage pharmaceutical company dedicated to developing stenoparib (2X-121)—a differentiated, dual PARP and WNT pathway inhibitor, reported financial results for the third quarter ended September 30, 2026, and provided an update on its clinical and business activities.

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Third Quarter 2026 Financial Highlights

Cash Position: As of September 30, 2026, Allarity had $24.1 million in cash and restricted cash, including $10.0 million in restricted cash.
R&D Expenses: Research and Development expenses were $4.2 million, compared with $1.2 million in the third quarter of 2025. The increase primarily reflected a $3.2 million charge for manufacturing stenoparib active pharmaceutical ingredient (API) to support drug supply for a potential Phase 3 trial.
G&A Expenses: General and administrative expenses for the third quarter of 2026 were $1.3 million, unchanged from $1.3 million for the third quarter of 2025.
Net Loss: Net loss attributable to common stockholders for the third quarter of 2026 was $6.2 million, compared to $2.8 million for the third quarter of 2025. A $3.2 million one-time manufacturing expense accounted for most of the year-over-year increase.
Fourth Quarter and Full Year 2026 Guidance

Liability Settlement Agreement: Subsequent to quarter-end, Allarity entered into a Settlement and Release Agreement with Novartis Pharma AG relating to liabilities arising from the previously terminated dovitinib license agreement. Under the agreement, Allarity paid $1.0 million in full settlement of an aggregate liability of $4.9 million, plus accrued interest.
Fourth Quarter and Full Year 2026 Guidance: Allarity is providing guidance for earnings of $0.01 to $0.04 per share in the fourth quarter. The one-time extraordinary gain from extinguishment of debt is expected to exceed operating expenses for the quarter. Allarity anticipates a full year 2026 loss between $0.73 and $0.76 per share. These figures are preliminary and unaudited, and actual results may differ from these estimates. The Company is not providing financial guidance for 2027.
"Completing API manufacturing gives us a head start on drug supply for a potential Phase 3 trial of stenoparib in advanced ovarian cancer while enrollment continues in our Phase 2 studies," said Thomas Jensen, Chief Executive Officer of Allarity. "We resolved a significant legacy liability and the expected gain from that settlement is the primary driver of our fourth-quarter earnings guidance. Our first contract under the CLIA laboratory services strategy is an early step toward generating revenue from capabilities we built for our own development programs. We’re also strengthening the intellectual property behind those programs, with a newly granted Japanese patent that protects our stenoparib DRP companion diagnostic into 2039."

Clinical and Drug Development Progress

Phase 2 Ovarian Cancer Program: Enrollment continued in the Phase 2 trial evaluating stenoparib in advanced, recurrent, platinum-resistant or platinum-ineligible ovarian cancer under U.S. Food and Drug Administration (FDA) Fast Track designation.
VA-funded Phase 2 Combination Trial: In parallel, the study evaluating stenoparib in combination with temozolomide for relapsed small cell lung cancer continued to enroll patients across multiple U.S. Department of Veterans Affairs (VA) medical centers. The combination trial is fully funded by the VA.
Japanese Patent for the Stenoparib DRP Companion Diagnostic: In September, the Japan Patent Office granted a patent for the stenoparib DRP companion diagnostic, providing protection into 2039. The patent further strengthens the intellectual property supporting stenoparib development with its drug-specific DRP companion diagnostic.

Corporate and Strategic Developments

CLIA Certification: In July, Allarity announced that its laboratory in Hoersholm, Denmark, had obtained a Certificate of Registration under the Clinical Laboratory Improvement Amendments (CLIA). The certification supports in-house DRP testing for U.S. clinical trials, including a potential registrational stenoparib trial in advanced ovarian cancer, and enables Allarity to offer laboratory services to other biotechnology and pharmaceutical companies.
First Contract Under the CLIA Laboratory Services Strategy: Subsequent to quarter-end, in October, Allarity announced its first revenue-generating contract under its newly established CLIA-certified laboratory services strategy. Under the agreement, the Company will provide a European biotechnology company with development, validation and related laboratory services to support implementation of a proprietary precision oncology predictive device for use in the United States.
Expanded Research Capabilities: Allarity expanded its in-house laboratory capabilities to include proteomics and cell line research, complementing its existing gene-expression and DRP services. The expanded capabilities support further investigation of stenoparib’s mechanism of action and broaden the research services available to external partners.

"Our priority is to build the clinical evidence that will guide the next stage of stenoparib development," Mr. Jensen concluded. "As we advance that work, we’re focused on delivering for our first CLIA services customer and building a laboratory business that can generate revenue alongside our clinical programs."

(Press release, Allarity Therapeutics, NOV 13, 2026, View Source [SID1234674771])