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Adagene (ADAG)
NASDAQ:ADAG
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Adagene
(NASDAQ:ADAG)
38Underperform
Positive Factors
Clinical Development
Adagene presented positive data from its ongoing Phase 1/2 study with ADG126 at the American Society of Clinical Oncology Gastrointestinal Cancers Symposium, which further solidified ADG126’s therapeutical potential in metastatic microsatellite stable colorectal cancer.
Financial Health
Adagene had approximately $85M in cash and cash equivalents, which is believed to be sufficient to support operations into the second half of 2026.
Safety Profile
ADG126 in combination with pembrolizumab remains well tolerated, with no dose-limiting toxicities and no dose discontinuations in the higher dosage cohort.
Negative Factors
Development Timeline
The launch timeline of ADG126 has been pushed out from 2028 to 2029, reflecting uncertainty in its development plan.
Market Opportunity
The target population for the treatment is relatively small and there are challenges with diagnosing peritoneal metastasis, which further complicate the treatment paradigm.
Regulatory Uncertainty
Regulatory uncertainty is a concern as another company is testing a similar immunotherapy combination for a similar treatment.
Adagene (ADAG) vs. S&P 500 (SPY)
Market Cap
$77.26M
Dividend YieldN/A
Average Volume (3M)38.55K
Price to Earnings (P/E)―
Beta (1Y)0.66
Revenue Growth-99.43%
EPS Growth-69.40%
CountryUS
Employees138
SectorHealthcare
Sector Strength79
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.74
Shares Outstanding47,109,554
10 Day Avg. Volume67,390
30 Day Avg. Volume38,555
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.10
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.00Price Target Upside387.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Adagene Business Overview & Revenue Model
Company DescriptionAdagene (ADAG) is a biotechnology company that operates in the immunotherapy sector, focusing on the discovery and development of novel antibody-based therapies for the treatment of cancer. The company leverages its proprietary Dynamic Precision Library (DPL) technology platform to design and optimize antibodies with enhanced therapeutic efficacy and safety profiles. Adagene's core products include a pipeline of monoclonal and bispecific antibodies aimed at addressing unmet medical needs in oncology.
How the Company Makes MoneyAdagene makes money primarily through partnerships and collaborations with other biotechnology and pharmaceutical companies. These partnerships often involve milestone payments and royalties based on the successful development and commercialization of antibody-based therapies. Additionally, Adagene may receive funding through licensing agreements for its proprietary technology platforms. The company's revenue model is heavily reliant on these strategic alliances, research and development collaborations, and potential future sales of its own developed therapeutic products.
Adagene Financial Statement Overview
Summary
Adagene's financial performance faces significant challenges. The income statement shows a steep decline in revenue, with deeply negative net profit margins. The balance sheet indicates a moderate financial position but with declining stockholders' equity, posing potential risks. Cash flow is negative, with worsening operating cash flow and free cash flow, indicating difficulty in cash generation.Income Statement
Adagene's income statement reveals significant challenges. The company has experienced a declining revenue trend from 2023 to 2024 with a revenue decrease of 99.4%. The gross profit margin stands at 100%, indicating that all revenue was retained as gross profit. However, the net profit margin is deeply negative at -32383%, reflecting substantial losses relative to revenue. Both EBIT and EBITDA margins are also negative, highlighting profitability issues.25
Negative
Balance Sheet
Adagene's balance sheet shows a moderate financial position with some concerns. The debt-to-equity ratio is 0.37, indicating a manageable level of debt. However, stockholders' equity has decreased, reflecting potential risk. The equity ratio stands at 56.6%, suggesting reasonable asset financing through equity, yet the negative trends in equity raise concerns.40
Negative
Cash Flow
The cash flow statement indicates significant challenges. Operating cash flow is negative and worsening, with a free cash flow growth rate of -4.2% from 2023 to 2024. Operating cash flow to net income and free cash flow to net income ratios are unfavorable, reflecting difficulty in generating cash relative to net losses.35
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 815.75K | 103.20K | 18.11M | 9.29M | 10.18M | 480.00K | Gross Profit |
| 390.28K | 103.20K | 18.11M | 9.29M | 10.18M | 480.00K | EBIT |
| -36.99M | -35.95M | -23.72M | -83.92M | -72.36M | -19.17M | EBITDA |
| -36.06M | -31.65M | -14.95M | -77.39M | -69.99M | -41.34M | Net Income Common Stockholders |
| -31.85M | -33.42M | -18.95M | -79.97M | -73.18M | -16.44M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 100.53M | 85.19M | 109.93M | 143.76M | 174.39M | 75.15M | Total Assets |
| 105.89M | 89.27M | 115.73M | 152.40M | 189.51M | 84.26M | Total Debt |
| 2.56M | 18.49M | 22.31M | 27.97M | 7.49M | 7.98M | Net Debt |
| -89.98M | -66.70M | -87.63M | -115.79M | -166.90M | -67.17M | Total Liabilities |
| 162.90M | 38.74M | 45.17M | 69.31M | 32.95M | 173.65M | Stockholders Equity |
| -57.01M | 50.52M | 70.56M | 83.09M | 156.56M | -89.39M |
| Cash Flow | Free Cash Flow | ||||
| -13.39M | -29.73M | -28.54M | -49.30M | -45.92M | -29.46M | Operating Cash Flow |
| -13.37M | -29.70M | -28.45M | -48.61M | -43.41M | -28.53M | Investing Cash Flow |
| 447.24K | 1.11M | -77.36K | -686.05K | -2.51M | 7.07M | Financing Cash Flow |
| -1.44M | 3.77M | -5.37M | 17.82M | 145.36M | 4.44M |
Adagene Technical Analysis
Negative
1.64
Price Trends
1.85
Negative
1.99
Negative
2.32
Negative
Market Momentum
-0.08
Positive
50.95
Neutral
48.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADAG, the sentiment is Negative. The current price of 1.64 is below the 20-day moving average (MA) of 1.77, below the 50-day MA of 1.85, and below the 200-day MA of 2.32, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 50.95 is Neutral, neither overbought nor oversold. The STOCH value of 48.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADAG.
Adagene Risk Analysis
Adagene disclosed 120 risk factors in its most recent earnings report. Adagene reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Adagene Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $4.07B | ― | -31.41% | ― | 49.59% | 24.92% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% | |
46 Neutral | $1.64B | ― | -43.94% | ― | -83.18% | -144.95% | |
45 Neutral | $57.40M | ― | -22.38% | ― | ― | ― | |
42 Neutral | $77.93M | ― | -54.21% | ― | -78.55% | -0.92% | |
38 Underperform | $28.46M | ― | -88.91% | ― | ― | 30.37% | |
38 Underperform | $77.26M | ― | -55.14% | ― | -99.43% | -69.40% |
* Healthcare Sector Average
Performance Comparison
ADAG
Adagene
1.58
-1.27
-44.56%
FATE
Fate Therapeutics
0.75
-6.17
-89.16%
ZLAB
Zai Lab
31.77
16.25
104.70%
IMAB
I-MAB
0.68
-1.15
-62.84%
BEAM
Beam Therapeutics
15.27
-12.93
-45.85%
ALXO
ALX Oncology Holdings
0.52
-11.71
-95.75%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.