Adicet Bio (ACET) AI Stock Analysis

• Market Cap: $68.65M
• Dividend Yield: N/A
• Average Volume (3M): 407.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: N/A
• EPS Growth: 59.75%
• Country: US
• Employees: 152
• Sector: Healthcare
• Sector Strength: 71
• Industry: Biotechnology
• EPS (TTM): -1.33
• Shares Outstanding: 82,685,750
• 10 Day Avg. Volume: 336,185
• 30 Day Avg. Volume: 407,418
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 87.13
• Price to Cash Flow (P/CF): -0.70
• P/FCF Ratio: 0.00
• 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: $6.00
• Price Target Upside: 622.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Adicet Bio faces significant financial headwinds with no revenue and sustained losses, offset slightly by a strong cash position. The technical analysis supports a bearish trend, and the valuation metrics indicate challenges due to unprofitability. However, the recent initiation of a Phase 1 trial for ADI-270 offers a glimpse of strategic progress, though the stock remains high-risk without clear improvements.

Positive Factors

Clinical Development

Adicet's ADI-270 demonstrated strong anti-tumor activity and a lower inflammatory profile in trials.

Financial Stability

Adicet highlights a solid cash position of $176.3MM, indicating financial stability.

Regulatory Milestones

ADI-001 has been granted FDA Fast Track Designation for the potential treatment of adult patients with refractory systemic lupus erythematosus (SLE) with extrarenal involvement, adult patients with systemic sclerosis (SSC), and patients with relapsed or refractory class III or class IV lupus nephritis (LN).

Negative Factors

Market Valuation

Shares trade at about 44% of ending 4Q24 cash, which is seen as a fair discount due to uncertainties.

Operational Risks

Risks include commercial, regulatory, development, manufacturing, financial, and liability.

Revenue Generation

For 4Q24, Adicet reported no revenues, aligning with expectations but still a negative indicator.

Adicet Bio Business Overview & Revenue Model

Company Description

Adicet Bio, Inc. (ACET) is a biotechnology company focused on the development of allogeneic gamma delta T cell therapies for cancer. Operating within the healthcare sector, Adicet Bio aims to harness the unique properties of gamma delta T cells to effectively target and eliminate cancer cells. The company's core product pipeline includes innovative immunotherapies designed to treat various types of cancer, leveraging its proprietary technology platform.

How the Company Makes Money

Adicet Bio primarily makes money through the development and commercialization of its allogeneic gamma delta T cell therapies for cancer treatment. The company generates revenue from partnerships and collaborations with other pharmaceutical companies, as well as through grants and funding aimed at advancing its research and development efforts. Additionally, Adicet Bio may earn income from licensing agreements, where it allows other companies to utilize its proprietary technology in exchange for upfront payments, milestone payments, and potential royalties on future products. The success of these revenue streams is significantly influenced by the company's ability to bring its therapeutic candidates to market and establish strong industry collaborations.

Adicet Bio Financial Statement Overview

Summary

Adicet Bio's financial statements exhibit significant challenges, including no revenue, ongoing losses, and reliance on debt financing. Despite a healthy equity position and substantial cash reserves, the negative cash flows and financial risks pose substantial hurdles.

Income Statement

Adicet Bio's income statement reflects significant challenges with no total revenue reported in the recent year, leading to a gross profit margin of 0%. The consistent net losses over the years and a declining EBIT indicate ongoing operational inefficiencies. The company has not shown recent revenue growth, presenting a concerning outlook for profitability.

Balance Sheet

The balance sheet shows some stability with a healthy equity position due to a positive stockholders' equity. However, the company carries a debt level that is notable, though it's offset by a substantial cash position. Despite these factors, the equity ratio suggests some financial risk due to high liabilities compared to assets.

Cash Flow

The cash flow statement highlights negative operating cash flow and free cash flow, indicating cash outflows from operations. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, reflecting cash management issues. The reliance on financing activities to cover deficits is a potential area of concern.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	24.99M	9.73M	17.90M
	Gross Profit
0.00	-6.10M	19.98M	9.73M	17.90M
	EBIT
-127.61M	-152.04M	-72.55M	-61.43M	-39.19M
	EBITDA
-127.61M	-136.53M	-64.70M	-60.41M	-37.41M
	Net Income Common Stockholders
-117.12M	-142.66M	-67.03M	-62.00M	-36.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
176.30M	159.71M	257.66M	277.54M	94.61M
	Total Assets
220.22M	207.29M	330.69M	338.94M	153.84M
	Total Debt
17.23M	20.92M	21.02M	20.94M	21.64M
	Net Debt
-39.26M	-138.79M	-236.63M	-256.60M	-62.69M
	Total Liabilities
33.61M	37.12M	38.35M	35.81M	44.01M
	Stockholders Equity
186.61M	170.18M	-238.11M	-168.32M	-106.33M
Cash Flow		Free Cash Flow
-93.50M	-98.18M	-61.55M	-64.10M	-42.54M
	Operating Cash Flow
-92.38M	-93.72M	-44.77M	-51.05M	-41.55M
	Investing Cash Flow
-119.24M	-4.46M	-16.78M	-2.80M	115.22M
	Financing Cash Flow
111.31M	236.00K	41.51M	242.69M	303.00K

Adicet Bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACET, the sentiment is Negative. The current price of 0.83 is above the 20-day moving average (MA) of 0.82, below the 50-day MA of 0.88, and below the 200-day MA of 1.18, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.64 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACET.

Adicet Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEAM	50 Neutral	$2.22B	―	-43.94%	―	-83.18%	-144.95%
Sector *	49 Neutral	$6.85B	0.81	-52.91%	2.50%	19.94%	1.20%
CRSP	46 Neutral	$3.17B	―	-19.20%	―	-89.95%	-123.71%
FATE	42 Neutral	$97.33M	―	-54.21%	―	-78.55%	-0.92%
ACET	39 Underperform	$68.65M	―	-65.65%	―	―	59.75%
EDIT	39 Underperform	$103.72M	―	-98.10%	―	-58.64%	-40.05%
NTLA	39 Underperform	$835.39M	―	-54.00%	―	59.55%	3.09%

Adicet Bio Corporate Events

Adicet Bio Advances with Phase 1 Trial of ADI-270

Adicet Bio has initiated the Phase 1 clinical trial of ADI-270, dosing the first patient with metastatic/advanced clear cell renal cell carcinoma (ccRCC). This significant milestone marks the advancement of Adicet’s gamma delta 1 CAR T cell product aimed at addressing solid tumors. With encouraging preclinical data showing potent activity and tumor infiltration, Adicet plans to share preliminary clinical data in the first half of 2025, potentially impacting treatment options for ccRCC, which currently has limited effective therapies.