Adagene (ADAG)
NASDAQ:ADAG
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Adagene
(NASDAQ:ADAG)
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Rating:53Neutral
Price Target:
$4.00
▲(0.76% Upside)
Action:ReiteratedDate:04/09/26
The score is primarily held back by weak financial performance—ongoing losses, volatile revenue quality, and persistent negative free cash flow—despite an improved 2025 trajectory and manageable leverage. Technicals are a supportive offset with price above major moving averages and positive MACD, while valuation remains constrained by negative earnings and no dividend support.
Positive Factors
Promising clinical efficacy and regulatory progress
Robust dose-dependent responses, prolonged PFS and FDA Fast Track for muzastotug+pembrolizumab materially de-risk the lead program. This supports a clear regulatory pathway and strengthens the program's ability to reach registrational studies and durable value inflection over the next 2–6 months.
Negative Factors
Persistent negative operating and free cash flow
The company has a multi-year pattern of negative operating and free cash flow, meaning it cannot self-fund growth. Even with improved 2025 metrics, continued cash burn makes Adagene dependent on external financing, which can dilute shareholders and constrain long-term strategy.
Read all positive and negative factors
Positive Factors
Negative Factors
Promising clinical efficacy and regulatory progress
Robust dose-dependent responses, prolonged PFS and FDA Fast Track for muzastotug+pembrolizumab materially de-risk the lead program. This supports a clear regulatory pathway and strengthens the program's ability to reach registrational studies and durable value inflection over the next 2–6 months.
Read all positive factors
Adagene (ADAG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$171.06M
Dividend YieldN/A
Average Volume (3M)364.44K
Price to Earnings (P/E)―
Beta (1Y)0.35
Revenue Growth7336.90%
EPS Growth49.64%
CountryUS
Employees138
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.47
Shares Outstanding66,072,590
10 Day Avg. Volume445,445
30 Day Avg. Volume364,442
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)2.02
Price to Sales (P/S)9.30
P/FCF Ratio-4.55
Enterprise Value/Market Cap0.39
Enterprise Value/Revenue8.65
Enterprise Value/Gross Profit9.36
Enterprise Value/Ebitda-3.18
Forecast
1Y Price Target
$8.33Price Target Upside109.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.48
Revenue Forecast (FY)N/A
Adagene Business Overview & Revenue Model
Company Description
Adagene Inc., a clinical stage biopharmaceutical company, engages in the research, development, and production of monoclonal antibody drugs for cancers. The company's product candidates include ADG106, a human ligand-blocking agonistic anti-CD137 ...
How the Company Makes Money
Adagene’s revenue model is primarily partnership- and collaboration-driven rather than product-sales driven, because it is a clinical-stage company without approved commercial products. It makes money mainly through (1) collaboration and licensing...
Adagene Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
64
Positive
Cash Flow
24
Negative
| Breakdown | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.67M | 103.20K | 18.11M | 9.29M | 10.18M |
| Gross Profit | 7.67M | -823.04K | 18.11M | 9.29M | 10.18M |
| EBITDA | -16.85M | -31.66M | -14.95M | -77.39M | -69.99M |
| Net Income | -17.61M | -33.42M | -18.95M | -79.97M | -73.18M |
Balance Sheet | |||||
| Total Assets | 78.26M | 89.27M | 115.73M | 152.40M | 189.51M |
| Cash, Cash Equivalents and Short-Term Investments | 74.52M | 85.19M | 109.93M | 143.76M | 174.39M |
| Total Debt | 6.26M | 18.49M | 22.31M | 27.97M | 7.49M |
| Total Liabilities | 42.91M | 38.74M | 45.17M | 69.31M | 32.95M |
| Stockholders Equity | 35.35M | 50.52M | 70.56M | 83.09M | 156.56M |
Cash Flow | |||||
| Free Cash Flow | -15.67M | -29.73M | -28.54M | -49.30M | -45.92M |
| Operating Cash Flow | -15.66M | -29.70M | -28.45M | -48.61M | -43.41M |
| Investing Cash Flow | 476.80K | 1.11M | -77.36K | -686.05K | -2.51M |
| Financing Cash Flow | 4.45M | 3.77M | -5.37M | 17.82M | 145.36M |
Adagene Technical Analysis
Positive
3.97
Price Trends
3.51
Positive
2.76
Positive
2.36
Positive
Market Momentum
0.11
Positive
53.75
Neutral
28.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADAG, the sentiment is Positive. The current price of 3.97 is above the 20-day moving average (MA) of 3.96, above the 50-day MA of 3.51, and above the 200-day MA of 2.36, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 53.75 is Neutral, neither overbought nor oversold. The STOCH value of 28.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | $84.33M | -1.57 | 240.83% | ― | -41.52% | 42.50% | |
53 Neutral | $171.06M | -4.32 | -48.20% | ― | 7336.90% | 49.64% | |
53 Neutral | $180.73M | -1.64 | -81.77% | ― | ― | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
45 Neutral | $68.00M | -2.79 | -33.97% | ― | ― | 47.28% | |
44 Neutral | $19.89M | -1.06 | 7743.57% | ― | ― | -25.06% | |
42 Neutral | $18.86M | -5.19 | -74.58% | ― | ― | 33.15% |
* Healthcare Sector Average
ADAG
Adagene
3.61
2.01
125.62%
IFRX
InflaRx
2.50
0.92
58.23%
CLNN
Clene
7.16
4.58
177.52%
QNCX
Quince Therapeutics
1.22
-9.08
-88.15%
IMA
ImageneBio
6.08
-6.88
-53.09%
ANEB
Anebulo Pharmaceuticals
0.46
-0.61
-56.82%
Adagene Corporate Events
Adagene Posts Strong Muzastotug Data and Incyte Collaboration in MSS Colorectal Cancer
Apr 2, 2026
On April 2, 2026, Adagene reported updated interim data from a Phase 1b/2 study of its masked anti-CTLA-4 antibody muzastotug in combination with pembrolizumab in advanced microsatellite-stable colorectal cancer patients without liver metastases, ...
Adagene Prices US$70 Million ADS Offering to Bolster Cancer Immunotherapy Pipeline
Apr 2, 2026
On April 2, 2026, Adagene Inc. priced an underwritten public offering of 18,666,000 American depositary shares at US$3.75 per ADS, aligned with the 30-day volume-weighted average price. The deal, led by Leerink Partners and LifeSci Capital with Lu...
Adagene Posts 2025 Results as Muzastotug Data, Partnerships Extend Cash Runway to 2028
Apr 1, 2026
On April 1, 2026, Adagene reported its full-year 2025 results, highlighting encouraging clinical data for muzastotug plus pembrolizumab in microsatellite stable colorectal cancer, including a 29% confirmed response rate at 20 mg/kg and median over...
Adagene Outlines 2026 Clinical Milestones and Reports $74.5 Million Year-End Cash Runway
Jan 23, 2026
On January 23, 2026, Adagene reported unaudited cash and cash equivalents of $74.5 million as of December 31, 2025, which it expects to fund operations into late 2027, and detailed a series of 2025 milestones centered on its lead CTLA-4 antibody m...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.