Pulmatrix, Inc. (PULM): Business Model Canvas [Dec-2025 Updated]

You're looking at Pulmatrix, Inc. (PULM) right now, and honestly, it's a company in full transition, not a steady earner; I've seen a few pivots like this in my time. This one is stark: they are executing a major strategic pivot, aiming to complete a reverse merger with Cullgen while divesting their proprietary iSPERSE™ technology. With only $4.8 million in cash as of September 30, 2025, and reporting $0 revenue for the last quarter, the near-term risk is defintely present. But what does the full Business Model Canvas reveal about the value they are trying to salvage-like the potential 2% royalty from Cipla-and the costs they've slashed, with R&D under $0.1 million in Q3 2025? Dig into the nine blocks below to see the blueprint for this new public entity.

Pulmatrix, Inc. (PULM) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that define Pulmatrix, Inc.'s strategic path, especially as the company navigates the proposed merger and asset divestiture plan as of late 2025. These partnerships are critical for managing cash flow and realizing value from their proprietary technology.

Cullgen Inc. for proposed reverse merger transaction

The proposed reverse merger with Cullgen Inc. is a major structural partnership, essentially pivoting the combined entity toward Cullgen's targeted protein degraders pipeline. The transaction, announced in November 2024, saw Pulmatrix shareholders approve the necessary items on June 16, 2025. The remaining hurdle as of mid-2025 was the approval from the China Securities Regulatory Commission (CSRC). If the listing, initially targeted for June 2025, was delayed past Q3 2025, the deconsolidation of Cullgen would shift to Q4 2025 or later. Pre-merger Pulmatrix stockholders were projected to own approximately 3.6% of the combined company, while pre-merger Cullgen stockholders were expected to hold about 96.4%. The combined entity was anticipated to have roughly $65 million in cash and cash equivalents upon closing, providing a funding runway through 2026. Furthermore, Pulmatrix shareholders were slated to receive a special cash dividend if Pulmatrix's net cash at closing surpassed $2.5 million, subject to adjustments.

Cipla for ex-US development of PUR1900 with 2% royalty potential

The collaboration with Cipla centers on the inhaled iSPERSE™ formulation of itraconazole, PUR1900. Following the wind down of the Phase 2b trial operated by Pulmatrix in 2024, Pulmatrix now has no further financial responsibility for the development of PUR1900 outside the United States. Cipla has taken the lead, advising in 2025 that they completed their Phase 2 study in India and secured approval from India's Central Drug Standard Control Organization to move into a Phase 3 clinical trial. Pulmatrix's financial upside here is contingent: they stand to receive 2% royalties on any potential future net sales by Cipla outside the United States should PUR1900 reach the market there. For the U.S. market, Pulmatrix and Cipla will jointly seek to monetize PUR1900 for indications where an inhaled antifungal offers a therapeutic benefit or addresses an unmet medical need.

Potential buyers for the iSPERSE™ technology and clinical assets

As a direct consequence of the proposed merger with Cullgen, Pulmatrix is actively seeking to divest its proprietary iSPERSE™ technology platform and related clinical programs, which include the Phase 2 ready acute migraine program (PUR3100) and PUR1800 for COPD. This divestiture is a key part of the strategic pivot. The iSPERSE™ technology itself is a significant asset, characterized by particles engineered for a small, dense, and dispersible profile, which Pulmatrix believes results in superior drug delivery compared to traditional oral and injectable forms for certain diseases. As of September 30, 2025, the scope of this technology portfolio included substantial intellectual property:

• Approximately 146 granted patents in the portfolio.
• 18 of those granted patents are U.S.-granted patents.
• Approximately 50 pending patent applications across the U.S. and other jurisdictions.

MannKind Corporation for previous cross-license and facility transfer

In a series of transactions finalized around May/June 2024, Pulmatrix entered into a cross-license agreement and transferred its R&D facility in Bedford, Massachusetts, to MannKind Corporation. This was a non-cash transaction where MannKind assumed the lease, along with all associated leasehold improvements, laboratory equipment, and related personal property. This assumption of the lease was noted to help extend Pulmatrix's projected cash runway into 2026 (based on the May 2024 announcement). The cross-license involves perpetual, royalty-free exchanges of technology usage rights. MannKind gained exclusive licenses for iSPERSE™ with clofazimine and insulin for specific indications, while Pulmatrix received a perpetual, royalty-free, exclusive license to use MannKind's Cricket® inhalation device for PUR3100 (inhaled DHE for acute migraine).

Here's a quick look at the structure of that non-cash exchange:

Also, a Master Service Agreement was established for MannKind to provide future iSPERSE™ dry powder drug formulation development services to Pulmatrix.

Pulmatrix, Inc. (PULM) - Canvas Business Model: Key Activities

You're looking at the core actions Pulmatrix, Inc. is taking right now, which is really about managing a transition, not traditional drug development. The whole focus is on executing the exit strategy from its legacy assets to complete the merger.

Completing the proposed merger with Cullgen

The primary activity is pushing the proposed merger with Cullgen Inc. to the finish line. Stockholders approved this transaction on June 16, 2025. The deal creates a new Nasdaq-listed company centered on targeted protein degradation technology. The closing is contingent on a couple of key external approvals, specifically from Nasdaq for the listing of the combined entity's shares and approval from the China Security Regulatory Commission (CSRC). The initial expectation was for the transaction to close by the end of March 2025, but by Q3 2025, it was still pending these final conditions.

Executing the divestment process for iSPERSE™ technology and clinical programs

This activity runs parallel to the merger. Pulmatrix, Inc. is actively in the process to potentially divest its proprietary dry powder delivery technology, iSPERSE™, along with three related clinical programs, including the Phase 2 ready acute migraine candidate. This divestment is a condition or component of the overall merger plan. The iSPERSE™ patent portfolio as of June 30, 2025, included approximately 146 granted patents, with 18 of those being granted U.S. patents, plus about 54 additional pending applications.

Minimal ongoing research and development (R&D) on legacy pipeline

Research and development activity has been scaled way back to conserve cash for the transition. For the three months ended September 30, 2025, R&D expenses were reported as less than $0.1 million. This is a significant drop from the $0.8 million reported for the same period in 2024. This reduction stems from winding down the PUR1900 Phase 2b clinical trial, disposing of the lab and facilities lease, and employee terminations. Honestly, the R&D focus is effectively zero as the company pivots.

Maintaining Nasdaq listing compliance for the combined entity

While the immediate focus is on the listing approval for the new entity post-merger, Pulmatrix, Inc. itself had to manage its own listing status leading up to the close. The company previously regained compliance with Nasdaq's minimum bid price requirement as of March 14, 2022. The current key activity here is securing Nasdaq's approval for the listing of the shares of the combined company upon the merger's closing. The combined entity is slated to trade on The Nasdaq Capital Market.

Here's a quick view of the financial state supporting these activities as of the end of the third quarter of 2025.

The company anticipates its current cash position, given the operational efficiencies, is enough to fund operations until the fourth quarter of 2026. That runway is critical while waiting for the merger closing conditions to be met.

The shift in operational focus is stark when you look at the expense structure:

• Winding down PUR1900 trial completion.
• Disposal of lab and facilities lease.
• Employee terminations contributing to cost reduction.
• General and administrative expenses were $0.9 million for the three months ended September 30, 2025, down from $2.2 million in the same period of 2024.

Finance: draft 13-week cash view by Friday.

Pulmatrix, Inc. (PULM) - Canvas Business Model: Key Resources

You're looking at the core assets Pulmatrix, Inc. (Pulmatrix) is bringing to the table right now, especially given the planned divestiture as part of the Cullgen merger. These aren't just line items; they are the foundation of their historical value proposition in inhaled therapeutics.

The most critical tangible asset is the proprietary iSPERSE™ dry powder inhalation technology platform. Honestly, this technology is what Pulmatrix is known for; it's engineered to create small, dense, and highly dispersible particles. Pulmatrix believes this design gives it dispersibility advantages over traditional porous engineered particles, which should translate to superior drug delivery compared to standard oral or injectable forms for certain diseases. We know this technology has seen some external validation, for example, through completed transactions with MannKind Corporation, which helped confirm its potential value.

This technology is protected by a significant intellectual property moat. Here's a quick look at the patent situation as of the end of the third quarter of 2025:

That portfolio of approximately 146 granted patents is definitely a core resource, though Pulmatrix is currently in a process to potentially divest it along with its clinical programs.

Financially, the company's liquidity position as of September 30, 2025, was lean, which underscores the urgency of the planned merger or asset monetization. You need to know the exact number here:

• Cash and cash equivalents: $4.8 million as of September 30, 2025.
• Anticipated cash runway: Sufficient to fund operations into the fourth quarter of 2026, based on current spending priorities.

The company's ability to execute on any near-term strategic alternatives hinges on this cash position. Here's the quick math: $4.8 million runway into Q4 2026 means operational burn is tightly managed, which makes sense given the wind-down activities reported.

Finally, the most advanced clinical asset tied to this platform is a key resource, even if it's slated for divestiture. That is PUR3100 for acute migraine.

• Status: Phase 2-ready.
• Regulatory Milestone: Received Food and Drug Administration acceptance of an Investigational New Drug (IND) application and a 'study may proceed' letter for a Phase 2 study.
• Phase 1 Data Highlight: Phase 1 results, published in 2024 in Headache: The Journal of Head and Face Pain, showed PUR3100 achieved peak exposures in the targeted therapeutic range with a time to maximum concentration at five minutes post-dosing.
• Safety Profile Note: Phase 1 data also indicated a lower incidence of nausea and no vomiting compared to the intravenously administered dihydroergotamine (DHE) dose group.

PUR3100 is an orally inhaled dihydroergotamine (DHE) engineered using the iSPERSE™ technology.

Finance: draft 13-week cash view by Friday.

Pulmatrix, Inc. (PULM) - Canvas Business Model: Value Propositions

You're looking at the core value being offered by Pulmatrix, Inc. as of late 2025, keeping in mind the strategic pivot underway with the Cullgen merger.

Opportunity to acquire a Phase 2-ready inhaled migraine asset (PUR3100)

The value proposition centers on PUR3100, an orally inhaled dihydroergotamine (DHE) formulation. This asset is positioned as ready for the next stage of human testing.

• PUR3100 is a Phase 2-ready asset.
• Received Food and Drug Administration acceptance of an Investigational New Drug (IND) application.
• Received a 'study may proceed' letter to initiate a Phase 2 study.

Phase 1 trial results provided concrete data points supporting its profile:

Dry powder technology (iSPERSE™) for superior drug delivery to the lungs

The underlying technology, iSPERSE™, is engineered for efficient delivery, which is a key part of the value, even as the company plans to divest it.

• The technology allows for the delivery of large doses into lungs (tens of milligrams) with high lung delivery efficiency.
• Requires low inspiratory flow for deep lung penetration.
• The intellectual property supporting this technology included approximately 146 granted patents as of September 30, 2025.
• Of those granted patents, 18 were U.S.-granted patents.
• Approximately 50 pending patent applications existed in the U.S. and other jurisdictions as of September 30, 2025.

Potential for a new public entity focused on targeted protein degradation (post-merger)

The proposed merger with Cullgen shifts the focus to a new therapeutic modality, creating a different value proposition for the resulting entity.

Here's the quick math on the current entity's financial state leading into the transition:

The merger agreement was amended on April 7, 2025, and stockholder approval was secured on June 16, 2025.

Reduced systemic side effects via inhaled delivery for respiratory diseases

The iSPERSE™ platform itself offers a distinct advantage by changing how the drug interacts with the body, which is a core value for inhaled treatments.

• The technology is designed to avoid first-pass effect.
• It aims for reduced systemic side-effects compared to oral delivery.
• The PUR1800 program for Acute Exacerbations in Chronic Obstructive Pulmonary Disease (AECOPD) showed it was well-tolerated with no observed safety signals in its Phase 1b study (data presented in 2023).

The inhaled DHE (PUR3100) data supports this, showing a lower incidence of nausea and no vomiting compared to IV DHE.

Finance: finalize the pro forma cash flow projection incorporating the divestment by next Tuesday.

Pulmatrix, Inc. (PULM) - Canvas Business Model: Customer Relationships

You're navigating a critical transition period, where customer relationships are less about selling a current product and more about managing strategic partnerships and communicating a fundamental shift in the business focus ahead of the Cullgen merger. The relationships are heavily weighted toward institutional stakeholders and a key legacy partner.

Strategic outreach to potential buyers for asset divestiture

Pulmatrix, Inc. has been actively engaging potential buyers for its non-core assets, primarily driven by the proposed merger with Cullgen Inc. This outreach centers on divesting the proprietary iSPERSE™ dry powder delivery technology and associated clinical programs, such as the Phase 2 ready acute migraine candidate. The objective is to streamline operations for the post-merger entity focused on targeted protein degradation.

The company's patent portfolio, which underpins the technology being offered for divestiture, is a key asset in these discussions. As of September 30, 2025, this portfolio included approximately 146 granted patents, with 18 of those being U.S.-granted patents, alongside roughly 50 pending patent applications in the U.S. and other jurisdictions.

The financial impact of this strategic pivot is reflected in the operational spend as of the third quarter of 2025:

• Revenues for the three months ended September 30, 2025, were $0.
• Research and development expenses dropped to less than $0.1 million for the same period.
• General and administrative expenses were $0.9 million for the three months ended September 30, 2025.

The company's cash position is being managed to support this transition, with total cash and cash equivalents reported at $4.8 million as of September 30, 2025. This balance is anticipated to fund operations into the fourth quarter of 2026.

Investor relations focused on communicating the merger and strategic shift

Investor relations efforts in 2025 have been dominated by the proposed merger with Cullgen. Communication has been focused on achieving closing conditions and detailing the resulting entity's focus on targeted protein degradation technology, which will feature three degrader programs in Phase 1 clinical trials.

Key milestones communicated to investors included:

• The Registration Statement on Form S-4 being declared effective by the SEC on May 9, 2025.
• Pulmatrix stockholders approving the Merger and related proposals at a special meeting held on June 16, 2025.
• The proposed merger remaining anticipated to close in 2025, subject to final conditions, as stated in the Third Quarter 2025 update on October 16, 2025.

This communication strategy aims to maintain confidence through a period of corporate transformation. Honestly, keeping shareholders informed during a merger where the core assets are being divested requires clear, consistent messaging about the future structure.

Maintaining collaboration with Cipla for PUR1900 development outside the US

The relationship with Cipla regarding the inhaled iSPERSE™ formulation of itraconazole (PUR1900) has shifted from joint development to a royalty-based arrangement for ex-U.S. markets, as Pulmatrix, Inc. bears no further financial responsibility for its development. This change followed the wind down of the U.S. Phase 2b trial in 2024.

The current status of this relationship, as of late 2025, is defined by Cipla's progress:

Within the United States, Pulmatrix and Cipla will continue to seek monetization opportunities for PUR1900.

Pulmatrix, Inc. (PULM) - Canvas Business Model: Channels

You're looking at the Channels Pulmatrix, Inc. uses to deliver value and execute its corporate strategy as of late 2025. Given the proposed merger with Cullgen, the primary channels are currently focused on corporate transactions-divestment and merger completion-rather than traditional product commercialization channels for its legacy assets.

Investment banks and advisors for the asset divestment process

While the specific names of the investment banks or financial advisors engaged by Pulmatrix, Inc. for the asset divestment process are not publicly detailed in the latest corporate updates, the divestment itself is intrinsically linked to the proposed merger with Cullgen, Inc. The process involves transferring or winding down the rights to the iSPERSE™ technology and associated clinical programs.

Here's a look at the assets central to this divestment/merger channel as of the third quarter of 2025:

The company's cash position of $4.8 million as of September 30, 2025, is expected to sustain operations into the fourth quarter of 2026, which provides a runway while these divestment/merger channels are being finalized.

Corporate communications and SEC filings for merger updates

The most critical current channel for Pulmatrix, Inc. is communication surrounding the merger, which dictates the fate of its existing business structure. This communication flows through official SEC filings and press releases.

• Merger Agreement with Cullgen was entered into on November 13, 2024.
• Registration statement on Form S-4 (File No. 333-284993) was initially filed with the SEC on February 14, 2025.
• The Form S-4 was declared effective by the SEC on May 9, 2025.
• Pulmatrix stockholders approved the Merger on June 16, 2025.
• The proposed merger was anticipated to close in June 2025 as of the May 15, 2025 update.
• Merger-related costs partially offset the G&A expense reduction in Q3 2025.

The company reported zero revenue for the three months ended September 30, 2025, compared to $0.4 million for the same period in 2024, reflecting the wind down of the PUR1900 trial and the strategic shift.

Licensing and collaboration agreements with pharmaceutical partners

Existing licensing agreements serve as a residual channel for potential future revenue, though the focus is now on divestment. The most significant is the arrangement with Cipla for PUR1900.

The terms of the third amendment to the Cipla partnership, which resulted in the wind down of the PUR1900 Phase 2b study, established a clear royalty stream for Pulmatrix, Inc. This agreement means Pulmatrix bears no further financial responsibility for PUR1900 development.

The financial terms of this collaboration channel are:

• Pulmatrix will receive 2% royalties on any potential future net sales by Cipla outside the United States for PUR1900.
• Cipla advised Pulmatrix in 2025 that they completed their Phase 2 study in India and received approval from India's Central Drug Standard Control Organization to proceed with a Phase 3 clinical trial there.

Historically, in the year ended December 31, 2021, Pulmatrix recognized $3.7 million in revenue related to a research and development services and license agreement. That was a different time, though. Finance: draft 13-week cash view by Friday.

Pulmatrix, Inc. (PULM) - Canvas Business Model: Customer Segments

You're looking at the customer segments for Pulmatrix, Inc. (PULM) right before the Cullgen merger finalizes. Given the announced divestiture plan, the traditional customer segments for the inhalation assets are now potential acquirers or licensees of those assets, while the investor segment is defined by the merger mechanics.

Biopharmaceutical companies seeking late-stage inhaled assets (e.g., PUR3100)

The primary asset in this category, PUR3100 (orally inhaled dihydroergotamine for acute migraine), is characterized by its development stage, which is the key metric for this segment. The asset is described as Phase 2-ready. This status is a critical data point for any biopharma company considering an acquisition or in-licensing deal for the asset portfolio being divested.

A concrete example of a past partnership involving an inhaled asset is with Cipla for PUR1900. Under that agreement, Pulmatrix is entitled to 2% royalties on any potential future net sales by Cipla outside the United States, following Cipla's completion of its Phase 2 study in India and approval to proceed with a Phase 3 clinical trial there.

Large pharmaceutical companies interested in dry powder technology platforms

The interest here centers on the proprietary iSPERSE™ technology platform, which Pulmatrix is in the process of potentially divesting. As of June 30, 2025, the patent portfolio related to iSPERSE™ included approximately 146 granted patents, with 18 of those being granted U.S. patents, alongside approximately 54 additional pending patent applications in the U.S. and other jurisdictions. This intellectual property count quantifies the platform's established scope for a potential technology acquirer.

Investors in the public markets following the proposed Cullgen merger

For public market investors, the customer segment is defined by their stake in the transaction that shifts the company's focus from inhaled therapeutics to targeted protein degradation. The ownership structure post-merger is the most relevant financial data point for this segment. Pre-merger Pulmatrix stockholders are expected to own approximately 3.6% of the combined company, while pre-merger Cullgen stockholders are expected to own approximately 96.4%.

Financially, Pulmatrix's cash position as of September 30, 2025, was $4.8 million, which the company anticipated would fund operations into the fourth quarter of 2026. The Q3 2025 net loss was reported at $0.877 million (or $877 Thousand), with Q3 revenue at $0.

Here's a quick look at the ownership structure and recent cash position:

What this estimate hides is the special cash dividend for Pulmatrix stockholders, which is contingent on the net cash at closing exceeding $2.5 million, subject to adjustments.

The key groups of interest are:

• Potential acquirers for the iSPERSE™ patent portfolio (146 granted patents as of June 30, 2025).
• Biopharma entities interested in the Phase 2-ready PUR3100 asset.
• Existing public market shareholders whose stake is diluted to approximately 3.6% post-merger.
• The partner Cipla, which is proceeding with Phase 3 for PUR1900 outside the U.S., potentially triggering 2% royalties.

Finance: draft 13-week cash view by Friday.

Pulmatrix, Inc. (PULM) - Canvas Business Model: Cost Structure

You're looking at the cost structure for Pulmatrix, Inc. (PULM) as the company executed its strategic pivot in late 2025, heavily influenced by the proposed merger with Cullgen and the divestment of its iSPERSE™ technology assets.

The cost base has been aggressively streamlined, reflecting the wind-down of legacy programs and a focus on transactional costs. For the third quarter ended September 30, 2025, the operational expenses show a dramatic reduction compared to the prior year period.

The primary drivers for the cost structure shift are clear:

• Minimal ongoing clinical trial costs due to wind-down of PUR1900 study.
• Significant reduction in personnel and facility overhead following the PUR1900 wind-down and lease disposal.
• Incurrence of specific, non-recurring costs tied to the proposed Merger.

Here's the quick math on the key operating expenses for the three months ended September 30, 2025, compared to the same period in 2024:

Research and Development expenses were significantly reduced, coming in at less than $0.1 million for Q3 2025, a decrease of approximately $0.8 million from the $0.8 million reported in Q3 2024. This steep drop is directly attributable to winding down the PUR1900 Phase 2b clinical trial, disposing of the Company's lab and facilities lease, and related employee terminations. This indicates minimal ongoing clinical trial costs for that specific program, as Pulmatrix bears no further financial responsibility for PUR1900 development outside the U.S..

General and Administrative expenses also saw a substantial decrease, dropping approximately $1.4 million to register at $0.9 million for the three months ended September 30, 2025, down from $2.2 million in Q3 2024. This reduction stemmed mainly from decreased employment and other operating costs associated with the previously mentioned wind-down activities. Still, this decrease was partially offset by incurred costs associated with the proposed Merger.

Costs associated with the proposed merger and divestment process are embedded within the G&A line item, specifically noted as an offset to the overall reduction. These are non-recurring expenses related to executing the strategic alternative of merging with Cullgen and divesting assets like the iSPERSE™ technology.

The company's cash position as of September 30, 2025, was $4.8 million, which management anticipated was sufficient to fund operations into the fourth quarter of 2026 based on these current operational efficiencies and spending prioritization.

Pulmatrix, Inc. (PULM) - Canvas Business Model: Revenue Streams

You're looking at the revenue picture for Pulmatrix, Inc. as of late 2025, which is heavily influenced by strategic shifts and the pending merger with Cullgen. Honestly, the current revenue generation from operations is minimal, which is typical when a company is actively divesting core assets and focusing on a major corporate transaction.

For the three months ended September 30, 2025, Pulmatrix, Inc. reported $0 in revenue. This compares to $0.4 million in revenue for the same three months in 2024, with the decrease tied to the completion of the wind down of the PUR1900 Phase 2b clinical trial during the year ended December 31, 2024. The company bears no further financial responsibility for PUR1900 development, which shifts the revenue focus to future milestones and royalties.

The potential for future non-operational revenue streams is tied to two main areas: asset monetization and existing partnership structures. You need to keep an eye on these as they represent the near-term upside outside of the Cullgen merger.

Here's a quick look at the key financial figures related to operations and funding as of the last reported quarter:

The path to future revenue includes potential proceeds from the divestiture of iSPERSE™ and clinical assets. Pulmatrix, Inc. is currently in a process to potentially divest its patent portfolio encompassing its iSPERSE™ technology, along with three related clinical programs, including the Phase 2-ready acute migraine program, PUR3100. What this estimate hides is that the actual proceeds from a divestiture aren't guaranteed or quantified yet.

Regarding the existing partnership, the potential future royalties on net sales of PUR1900 by Cipla outside the US remain a key component. Pulmatrix, Inc. will receive 2% royalties on any potential future net sales by Cipla outside the United States for PUR1900. Cipla took sole responsibility for development outside the US following the study wind down.

Financing activities are centered on managing the cash burn until the proposed merger with Cullgen closes. The company's current cash position is being managed to fund operations until that closing, which was anticipated to occur in 2025.

You should track these specific potential revenue drivers:

• 2% royalty stream from Cipla on PUR1900 net sales outside the US.
• Monetization efforts for PUR1900 within the United States, jointly pursued with Cipla.
• Proceeds from the planned divestiture of the iSPERSE™ patent portfolio and clinical assets like PUR3100.

Finance: draft 13-week cash view by Friday.