Aardvark Therapeutics, Inc. (AARD) AI Stock Analysis

• Market Cap: $244.31M
• Dividend Yield: N/A
• Average Volume (3M): 42.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: N/A
• EPS Growth: 46.68%
• Country: US
• Employees: 22
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 21,696,894
• 10 Day Avg. Volume: 49,091
• 30 Day Avg. Volume: 42,456
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.50
• Price Target Upside: 164.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 25 Underperform
• Price Target: ―

Aardvark Therapeutics, Inc. faces severe financial challenges typical of early-stage pharmaceutical companies, with zero revenue and substantial operational losses. The lack of technical and valuation indicators further contributes to the high-risk profile.

Positive Factors

Financial Position

AARD ended with ~$74M in cash/equivalents, which in conjunction with proceeds from its February IPO, is guided to support operations into 2027.

Product Development

The HERO study is well designed to optimize the potential for success in addressing the challenging indication of PWS.

Regulatory Environment

The recent approval of Soleno's Vykat XR in PWS highlights a supportive FDA, which should bode well for ARD-101.

Negative Factors

Competition

Aardvark will face competition from a newly approved drug that has already been validated by the FDA, potentially impacting its market share.

Market Dynamics

The pricing and competitive landscape dynamics appear favorable for Aardvark, even if the target patient population is small.

Aardvark Therapeutics, Inc. Business Overview & Revenue Model

Company Description

Aardvark Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing small-molecule therapeutics to activate innate homeostatic pathways for the treatment of metabolic diseases. Its lead product candidate is the ARD-101, an oral gut-restricted small-molecule agonist of certain targeting bitter taste receptors expressed in the gut lumen that is in Phase III clinical trial for hyperphagia associated with Prader-Willi Syndrome, as well as in Phase II clinical trial for hyperphagia associated with acquired hypothalamic obesity resultant from treatment of craniopharyngioma, including surgery or radiation. It also developing ARD-201, which is in Phase I clinical trial for the treatment of obesity. The company was incorporated in 2017 and is based in San Diego, California.

How the Company Makes Money

Aardvark Therapeutics, Inc. generates revenue primarily through the development and commercialization of its proprietary pharmaceutical products. The company earns income by licensing its drug candidates to larger pharmaceutical companies, securing milestone payments, and receiving royalties on product sales. Additionally, Aardvark may engage in strategic partnerships with other biotech firms and research institutions to co-develop and co-market therapies, further expanding its revenue streams. The company may also seek government grants and research funding to support its development programs, contributing to its financial stability.

Aardvark Therapeutics, Inc. Financial Statement Overview

Summary

Aardvark Therapeutics, Inc. shows significant financial instability typical of early-stage pharmaceutical firms, with zero revenue, negative equity, and cash flow challenges.

Income Statement

Aardvark Therapeutics, Inc. has reported zero revenue consistently over the past three years, indicating a lack of commercialized products or services. With increasing net losses and negative EBIT and EBITDA margins, the company faces significant profitability challenges, typical for early-stage pharmaceutical firms focused on R&D.

Balance Sheet

The company's balance sheet reflects significant financial instability with negative stockholders' equity, indicating liabilities exceed assets. The presence of minimal debt suggests reliance on equity financing, yet the negative equity and high liabilities pose substantial financial risk.

Cash Flow

Aardvark Therapeutics exhibits negative operating and free cash flows, consistent with its developmental stage. While financing inflows in 2024 provided liquidity, the company remains heavily cash-flow negative, highlighting the need for continued external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	0.00	0.00	0.00	0.00
Gross Profit	-92.00K	-16.00K	-97.00K	-110.00K
EBITDA	-40.77M	-20.57M	-7.32M	-10.25M
Net Income	-36.64M	-20.59M	-7.21M	-13.56M
Balance Sheet
Total Assets	147.47M	77.51M	10.54M	16.76M
Cash, Cash Equivalents and Short-Term Investments	141.82M	73.66M	9.99M	16.11M
Total Debt	645.00K	779.00K	162.00K	262.00K
Total Liabilities	10.55M	132.15M	45.34M	44.68M
Stockholders Equity	136.93M	-54.64M	-34.80M	-27.92M
Cash Flow
Free Cash Flow	-33.02M	-18.20M	-5.82M	-10.54M
Operating Cash Flow	-32.91M	-18.09M	-5.82M	-10.54M
Investing Cash Flow	-115.11M	-12.00M	0.00	-1.00M
Financing Cash Flow	87.85M	81.99M	0.00	225.00K

Aardvark Therapeutics, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	HK$18.32B	5.45	-4.00%	3.31%	9.92%	-18.97%
OABI	56 Neutral	$245.40M	―	-22.84%	―	6.05%	2.24%
NBTX	56 Neutral	$380.39M	―	2152.93%	―	―	―
THRD	49 Neutral	$242.79M	―	-19.94%	―	―	-14.76%
DRTS	38 Underperform	$271.04M	―	-43.83%	―	―	-21.92%
ANNX	38 Underperform	$261.12M	―	-66.75%	―	―	19.76%
AARD	25 Underperform	$244.31M	―		―	―	46.68%